The Power division released on Wednesday the latest statistics on the financial losses of electricity distribution companies (Discos) for the current fiscal year.
According to the data, Discos have reduced their losses in the first quarter of the current fiscal year, compared to the same period in the previous year.
In the first three months of the current fiscal year, the distribution companies reported losses amounting to Rs239billion, which is a significant reduction from the Rs308billion losses incurred in the same period last year.
Furthermore, the recovery rate of the distribution companies has improved. While it stood at 84 per cent in the first quarter of the previous year, it has risen to 91 per cent in the same period this year, showing progress in revenue collection.
In terms of circular debt, the Power division noted a significant shift. From July to October last year, the circular debt increased by Rs301billion. However, during the first four months of this year, the rise in circular debt was comparatively low, amounting to only Rs11billion.
These improvements indicate positive steps in the financial health of Pakistan's power sector, with efforts underway to enhance recovery rates and curb the growth of circular debt.
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