ISLAMABAD: Pakistan’s power sector equity slipped into negative territory by Rs800 billion in the last fiscal year as falling electricity sales, under recoveries and widespread power theft pushed six distribution companies into sustained losses. An official annual performance report has highlighted deep structural weaknesses across the sector despite massive government support.
According to the State Owned Enterprises report, total liabilities of the power sector stood at Rs9.2 trillion against assets of Rs8.4 trillion in fiscal year 2024 25. The Ministry of Finance attributed the negative equity to heavy losses at distribution companies, rampant theft, generation company re pricing, rising circular debt and an unsustainable business model.
To keep the sector operational, the government injected more than Rs1 trillion in subsidies during the year, including Rs552 billion for power distribution companies alone. Despite this support, six out of ten DISCOs remained loss making, while four companies returned to profit after years of losses.
The profitable entities included Gujranwala Electric Power Company with earnings of Rs13.6 billion and Tribal Electricity Supply Company with Rs9.4 billion, largely supported by subsidies. Faisalabad Electric Supply Company posted a profit of Rs9.6 billion due to improved recoveries, while Multan Electric Power Company earned Rs4.5 billion, though theft control remains a challenge.
The six loss making DISCOs recorded combined losses of Rs258 billion last year, bringing their cumulative losses close to Rs3 trillion. Quetta Electric Supply Company emerged as one of the worst performers with annual losses of Rs113 billion and total losses of Rs825 billion due to weak recoveries and high theft. Peshawar Electric Supply Company followed with losses of Rs93 billion driven by systemic theft.
The report also noted a 4 percent decline in power sector revenues to Rs3.9 trillion. With privatization plans for DISCOs under consideration and electricity tariffs already among the highest in the region, rising losses continue to push consumers toward rooftop solar and off grid solutions, further straining the national power system.
