The Power Division Pakistan reported historic improvements in the country’s power sector during the 2025 fiscal year, contradicting claims in the NEPRA report. Circular debt fell by 780 billion rupees, dropping from 2,393 billion to 1,614 billion rupees, signaling stronger financial health across the sector.
Better performance by distribution companies contributed 193 billion rupees in relief, while negotiations with power producers under the LPI framework saved an additional 260 billion rupees. Macro-economic improvements also positively impacted the sector, generating over 300 billion rupees in indirect benefits.
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Recovery rates improved from 92.4 percent to 96.6 percent, while under-recovery fell by 183 billion rupees, decreasing from 315 billion to 132 billion. Transmission and distribution losses reduced from 18.3 percent to 17.6 percent, resulting in savings of 11 billion rupees.
The Power Division emphasized that AT&C (Aggregate Technical & Commercial) losses form the basis of the load-shedding policy. Ending AT&C-based load-shedding entirely could impose an additional annual cost of 500 billion rupees, prompting a shift toward transformer-level targeted load management.
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Officials concluded that ongoing reforms in the power sector are moving in the right direction. Improvements in efficiency, financial discipline, and distribution performance indicate a sustainable path toward stabilizing Pakistan’s electricity system.