ISLAMABAD: LESCO has significantly improved its financial performance over the past two years by reducing its regulatory financial gap from Rs79 billion to around Rs21 billion. The improvement has saved more than Rs58 billion for the national treasury and highlights the impact of ongoing power sector reforms.
According to official details, LESCO also achieved a recovery rate of 101.05 percent during the same period. This is the first time the company has crossed the 100 percent recovery benchmark set by the National Electric Power Regulatory Authority (NEPRA). The milestone reflects stronger bill collection and better financial management.
The company also recorded a major decline in electricity distribution losses. These losses dropped from 15.8 percent to 11.86 percent within two years. The four-percentage-point reduction is the largest achieved by any electricity distribution company in Pakistan over a similar period.
As Pakistan’s biggest electricity distribution company, LESCO manages an annual revenue base of more than Rs1 trillion. Officials estimate that every one percent reduction in distribution losses improves the company’s financial position by nearly Rs10 billion. Based on this estimate, the four percent reduction represents one of the largest efficiency gains in the country’s power sector.
Federal Minister for Power Sardar Awais Ahmed Khan Leghari praised the company’s progress. He said the results show that continuous monitoring and data-based management can improve the performance of electricity distribution companies. He has regularly reviewed the performance of all distribution companies and encouraged management teams to meet recovery and loss reduction targets.
The improvements were achieved during the fiscal years from 2023-24 to 2025-26. Officials said the progress was supported by the vision of Prime Minister Muhammad Shehbaz Sharif and the leadership of the Power Ministry. Strong policy decisions, independent boards, network modernization, automation, and regular performance reviews also played an important role.
Customer-focused reforms further strengthened the company’s operations. Digital systems improved billing and recovery processes, while better planning helped increase operational efficiency. Independent boards were also given greater authority to make decisions without political interference.
The Ministry of Energy introduced several reforms to improve the performance of electricity distribution companies across Pakistan. These measures included digitizing billing systems, improving recovery processes, strengthening anti-electricity theft efforts, and enhancing customer services. Continuous monitoring also ensured that companies remained focused on meeting performance targets.
Officials believe that LESCO has become a strong example of how better governance and professional management can improve the financial health of the power sector. The company’s performance also supports broader efforts to reduce circular debt and strengthen Pakistan’s electricity distribution system.
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The success of LESCO is expected to encourage similar reforms in other electricity distribution companies. Authorities believe that continued oversight, transparent management, and operational independence can help improve efficiency across the national power sector while reducing financial losses in the years ahead.
