ISLAMABAD, Oct 27 (APP):Minister for Power Awais Ahmed Khan Leghari told the Senate on Tuesday that annual losses of power distribution companies (DISCOs) had declined to Rs325 billion from Rs591 billion in 2024, while circular debt had fallen from Rs2.4 trillion to around Rs1.6 trillion over the past two and a half years. Replying to a calling attention notice moved by Abid Sher Ali, he said the government had refinanced …
DISCOs losses drop to Rs325bn from Rs591bn: Leghari
ISLAMABAD, Oct 27 (APP):Minister for Power Awais Ahmed Khan Leghari told the Senate on Tuesday that annual losses of power distribution companies (DISCOs) had declined to Rs325 billion from Rs591 billion in 2024, while circular debt had fallen from Rs2.4 trillion to around Rs1.6 trillion over the past two and a half years.
Replying to a calling attention notice moved by Abid Sher Ali, he said the government had refinanced Rs1.2 trillion of circular debt. Under the plan, the Rs3.23 per-unit debt servicing surcharge would be eliminated within four years, and the remaining circular debt would also be paid off, he added.
Awais Leghari said distribution companies’ annual losses had declined to Rs360 billion last year and further to Rs325 billion this year. The Power Division’s budget support had also come down from Rs1,180 billion in 2024 to around Rs750 billion, he said.
He said the reduction in losses had lowered the government’s budget burden by about Rs200 billion.
The minister said consumers using up to 200 units were paying about Rs13 per unit against an actual cost of Rs35, receiving a subsidy of around 60 to 65 per cent. Their number had risen from 10 million to 22.5 million in two years, he added.
He said the government was working on a system to target subsidies according to income, potentially extending the eligibility limit to 250 units and linking relief to monthly consumption.
The work would take about one to one-and-a-half months, he added.
