Lahore Electric Supply Company (LESCO), Pakistan’s largest power distribution company, has saved the national exchequer more than Rs58 billion by reducing its financial gap from Rs79 billion to Rs21 billion over the past two years through aggressive loss reduction, improved recoveries and power sector reforms, setting a new national benchmark for performance, according to a statement issued by the Ministry of Energy (Power Division) on Thursday.
LESCO saves Rs58bn in two years, cuts losses to historic low
ISLAMABAD, Jul 31 (APP):Lahore Electric Supply Company (LESCO), Pakistan’s largest power distribution company, has saved the national exchequer more than Rs58 billion by reducing its financial gap from Rs79 billion to Rs21 billion over the past two years through aggressive loss reduction, improved recoveries and power sector reforms, setting a new national benchmark for performance, according to a statement issued by the Ministry of Energy (Power Division) on Thursday.
The company achieved a recovery rate of 101.05pc during the period, surpassing the 100pc benchmark set by the National Electric Power Regulatory Authority (NEPRA) for the first time.
Distribution losses declined from 15.8pc to 11.86pc, marking a four percentage point reduction , the largest two year loss reduction recorded by any electricity distribution company in the country’s history.
The achievement carries significant financial weight as LESCO, with an annual revenue base exceeding Rs1 trillion, generates an estimated Rs10bn improvement for every one percentage point reduction in losses.
The four point decline has therefore translated into one of the biggest efficiency gains ever recorded in Pakistan’s power distribution sector.
Federal Minister for Power Sardar Awais Ahmed Khan Leghari said LESCO’s performance demonstrated that sustained oversight, accountability and data driven management could deliver tangible results in the power sector.
The ministry said the minister had closely monitored loss and recovery trends across distribution companies, ensuring management teams remained focused on meeting targets and improving field level enforcement.
According to the statement, the turnaround was driven by the vision of Prime Minister Shehbaz Sharif and supported by reforms introduced by the Power Division, including digitisation of billing and recovery systems, stricter anti theft measures, network modernisation, continuous performance monitoring and customer focused initiatives.
The ministry said independent boards of directors and a policy of non interference in operational matters had enabled professional management to implement reforms without political pressure.
It added that LESCO’s performance offered a model for other distribution companies and strengthened efforts to curb circular debt while improving the financial sustainability of the power sector.
