Power distribution firms suffer Rs171bn losses in first quarter FY2025-26

ISLAMABAD: During the first quarter (July-September 2025) of current fiscal year, government-owned power distribution companies incurred total losses of Rs171 billion.

Of this amount, Rs87 billion resulted from DISCOs’ inefficiency and power theft, while Rs84 billion came from low electricity recoveries. Compared to the same period of previous year, losses recorded from July to September of current financial year were Rs68 billion lower.

Losses continued in the first quarter, causing national treasury to lose billions of rupees. However, on an annual basis, losses of DISCOs have declined.

According to Power Division documents, the total losses of government power distribution companies from July to September of the current fiscal year stood at Rs171 billion — Rs68 billion less than the same period last year.

The documents state in July-September 2024, the total losses of DISCOs were Rs239 billion, including Rs113 billion due to inefficiency and theft and Rs126 billion in recovery-related losses.

According to the documents, in fiscal year 2024-25, DISCOs’ total losses were Rs397 billion, while in 2023-24, their total losses were Rs591 billion, meaning DISCOs’ losses decreased by Rs194 billion. The DISCOs’ losses and under-recoveries form part of the circular debt of power sector.