ISLAMABAD (Dunya News) – The Power Division Pakistan has claimed “historic improvement” in the country’s power sector during fiscal year 2025, citing a significant reduction in circular debt and enhanced operational performance of distribution companies.
In a statement issued on Thursday, the division said that contrary to observations in a report by the National Electric Power Regulatory Authority (NEPRA), the power sector recorded substantial progress during the year.
According to the statement, circular debt declined by Rs780 billion, falling from Rs2,393 billion to Rs1,614 billion. Improved performance of distribution companies (DISCOs) resulted in a financial relief of Rs193 billion.
The division further stated that negotiations with power producers over Late Payment Interest (LPI) waivers led to savings of Rs260 billion, while macroeconomic improvements contributed an impact of over Rs300 billion.
The recovery rate increased from 92.4 percent to 96.6 percent, while under-recoveries dropped by Rs183 billion — from Rs315 billion to Rs132 billion.
Transmission and distribution (T&D) losses were reduced from 18.3 percent to 17.6 percent, generating savings of Rs11 billion.
The Power Division maintained that load management was being implemented in line with the AT&C (Aggregate Technical and Commercial) loss-based policy. It warned that eliminating AT&C-based load-shedding entirely could result in an additional annual burden of Rs500 billion.
The statement added that efforts were under way to shift toward transformer-level targeted load management, asserting that power sector reforms were moving in the right direction.