ISLAMABAD: Pakistan’s state-run Power Distribution Companies (Discos) have achieved notable progress in the first quarter (July-September) of fiscal year 2024-25, slashing losses by Rs69 billion and boosting bill recovery rates to 91%, up from 84% in the same period last year.
The Power Division reported that the growth of circular debt slowed significantly, rising by just Rs11 billion between July and October, compared to a staggering Rs301 billion increase during the same period last year. These improvements reflect enhanced financial management and operational efficiency within the energy sector.
In fiscal year 2023-24, Discos recorded losses of Rs591 billion due to high line losses and unpaid bills. However, the first quarter of FY25 marked a turnaround, with losses dropping to Rs239 billion, a significant improvement from Rs308 billion in Q1 FY24.
Key Factors Driving Recovery
The recovery is attributed to the restructuring of Discos, including the appointment of new heads and boards in June 2024 after the dissolution of underperforming management. Enhanced governance and stricter adherence to Key Performance Indicators (KPIs) played a crucial role in driving operational improvements.
Bill collections showed remarkable progress, with a 7% increase in the recovery rate, signifying better collection of dues. Additionally, the limited rise in circular debt underscores effective financial oversight compared to previous years.
This turnaround signals a promising shift in the power sector, with improved management practices paving the way for greater stability and reduced financial strain on the national energy framework.
Story by Israr Khan
