Recovery rate surpasses 101% as Pakistan’s largest power distributor posts historic efficiency gains.
ISLAMABAD: The Lahore Electric Supply Company (LESCO) has achieved cumulative savings of more than Rs58 billion for the national exchequer by significantly reducing transmission and distribution losses over the past two years, setting a new performance benchmark for Pakistan’s power distribution sector.
According to an official statement issued on Thursday, LESCO reduced its NEPRA-related financial gap from Rs79 billion to approximately Rs21 billion, reflecting one of the most significant operational improvements recorded by any electricity distribution company (DISCO) in the country.
During the same period, the company’s recovery rate increased to 101.05%, exceeding the 100% benchmark prescribed by the National Electric Power Regulatory Authority (NEPRA) for the first time.
LESCO also succeeded in reducing distribution losses from 15.8% to 11.86%, marking an unprecedented four-percentage-point decline. The government described it as the largest two-year reduction in distribution losses achieved by any DISCO in Pakistan’s history.
As Pakistan’s largest electricity distribution company, with annual revenues exceeding Rs1 trillion, every one-percentage-point reduction in losses translates into an estimated Rs10 billion in financial improvement. Officials said the four-point decline represents one of the biggest efficiency gains ever recorded in the country’s power distribution sector.
Federal Minister for Power Sardar Awais Ahmed Khan Leghari said LESCO’s performance demonstrates that consistent, data-driven oversight and accountability can deliver measurable improvements. He noted that the Ministry of Energy has regularly monitored the loss and recovery performance of all DISCOs while holding management teams accountable for achieving operational targets.
The government attributed LESCO’s turnaround to reforms implemented during fiscal years 2023-24 to 2025-26, including the vision of Prime Minister Shehbaz Sharif, policy direction from the Power Division, an independent and empowered Board of Directors, network modernization, digitalization of billing and recovery systems, continuous performance monitoring, and customer-focused service improvements.
According to the statement, the Ministry of Energy’s broader reform agenda has emphasized loss reduction, anti-electricity theft measures, digitization, and improved customer facilitation across the power sector. It also highlighted that granting professional boards and management operational autonomy, free from political interference, has enabled strategic planning and effective implementation.
Officials said LESCO’s success strengthens the case for extending similar governance and operational reforms to other electricity distribution companies, helping reduce circular debt and improve the financial sustainability of Pakistan’s power sector.