Nepra Report Highlights Rs 1.81 Trillion Power Sector Losses In Pakistan

The National Electric Power Regulatory Authority (Nepra) has released a concerning report detailing the state of Pakistan's power sector for FY 2024-25, highlighting significant financial losses and operational inefficiencies. The report indicates that the country’s electricity consumers faced a staggering burden of approximately Rs 1.81 trillion in capacity payments, with Rs 265 billion attributed to transmission and distribution (T&D) losses. Nepra noted that 'no distribution company achieved its technical loss targets,' and cumulative losses exceeded Rs 1 trillion when factoring in K-Electric's contributions. The report also revealed that the recovery rate for electricity bills has worsened, with many distribution companies failing to curb rampant power theft, leading to a financial hemorrhage that continues to escalate circular debt. According to Nepra, 'the persistent transmission and distribution losses along with low recovery performance continue to undermine the sector’s financial health and service quality.'