Islamabad, Nov 20: Electricity Distribution Companies Incur Rs. 239 Billion Loss in 3 Months, Impacting National Power Sector
Electricity distribution companies (DISCOs) reported a loss of Rs. 239 billion during the first quarter of the 2024-25 fiscal year, a decrease of Rs. 69 billion from Rs. 308 billion during the same period last year, according to the Power Division.
This improvement is attributed to higher collection rates, which rose to 91 percent in the first quarter, compared to 84 percent in FY24.
However, DISCOs still incurred a total loss of Rs. 591 billion in the 2023-24 fiscal year, primarily due to line losses and non-recovery issues.
Regarding circular debt, the first four months of FY24 saw an increase of Rs. 11 billion, a significant reduction compared to a rise of Rs. 301 billion during the same period last year.
The Power Division views these figures as an indication of better management of circular debt compared to previous years.
While the results through September 2024 show a positive trend, the power sector still faces significant challenges in achieving net positive growth in the coming years.
