by In a troubling development for Pakistan’s already ailing power sector, a new audit report has revealed an additional Rs. 277 billion in losses incurred by power distribution companies (DISCOs). These losses, attributed to inefficiencies, mismanagement, and non-recoveries, come as a major blow to public finances and undermine the sustainability of energy sector reforms.
The findings were unveiled during a recent Parliamentary Public Accounts Committee (PAC) session, sparking fresh concerns about the accountability and transparency of state-run power utilities.
Audit Exposes Yet Another Rs. 277 Billion in Extra Losses Incurred By Power Companies.
🔍 Key Findings of the Audit
According to the audit conducted by the Auditor General of Pakistan (AGP):
- Over Rs. 277 billion in “unauthorized and wasteful expenditures” were recorded across multiple DISCOs.
- Billions were lost due to line losses, meter tampering, and power theft.
- Non-recovery of dues from both government and private consumers remained a persistent issue.
- Significant amounts were spent without proper documentation or financial oversight.
This audit adds to a long list of previous reports highlighting poor governance in the power sector, where circular debt has already ballooned beyond Rs. 2.7 trillion.
⚠️ Impact on Consumers & Economy
The ripple effect of these losses is directly felt by:
- Consumers, who face ever-increasing electricity tariffs to compensate for inefficiencies.
- Businesses, which suffer from high energy costs and unreliable supply.
- The national economy, which continues to grapple with mounting circular debt and fiscal imbalances.
The Ministry of Energy has repeatedly promised reforms, but public confidence is wearing thin.
🏢 Which DISCOs Are in the Spotlight?
Though the audit report did not name all entities, previous records have consistently highlighted poor performance in:
- Hyderabad Electric Supply Company (HESCO)
- Peshawar Electric Supply Company (PESCO)
- Quetta Electric Supply Company (QESCO)
- Multan Electric Power Company (MEPCO)
These utilities have struggled with theft control, system losses, and low bill recovery ratios.
🗣️ Calls for Action Grow Louder
Lawmakers, energy experts, and watchdogs are calling for:
- Strict accountability for officials responsible for financial mismanagement.
- Independent audits of all DISCOs on a regular basis.
- Technology upgrades to reduce line losses and theft (e.g., smart meters, digital billing).
- Privatization or restructuring of non-performing distribution companies.
- Clear timelines for reducing circular debt and eliminating subsidies.
📉 A Vicious Cycle That Must Be Broken
Pakistan’s power sector is caught in a self-defeating loop:
- High losses →
- Tariff hikes →
- Low consumer trust & payment defaults →
- Increased losses
Breaking this cycle requires political will, transparency, and strategic reform—not just temporary fixes or passing the cost to end-users.
✅ Final Thoughts
The exposure of Rs. 277 billion in new losses by power companies is not just another number—it is a stark reminder of the systemic rot that continues to plague Pakistan’s energy infrastructure. While policymakers continue to promise reforms, what the country truly needs is swift, credible, and enforced accountability to prevent further bleeding of public resources.
