Pakistan's DISCOs Suffer Financial Losses Amid Decline in Electricity Sales

Pakistan's distribution companies (DISCOs) have faced significant financial losses in the fiscal year 2023-24, with a total loss of Rs591 billion. This decline in profitability is attributed to a 11% decrease in electricity sales. The losses in the first quarter of FY2024-25 have already reached Rs239 billion, indicating a continuation of the trend. In the first quarter of FY2023-24, the losses were Rs308 billion. However, there is a slight improvement in the overall losses, with a reduction of Rs69 billion. Despite this, the recovery of DISCOs in FY2023-24 stands at 91%. The primary reasons behind the decline in electricity sales are soaring energy costs and the increased adoption of solar power. As the energy landscape continues to evolve, DISCOs will need to adapt to these changes to mitigate their losses and ensure sustainable growth.