DISCOs Fail to Meet Loss Reduction Targets, ECC Expresses Alarm

Power-sector

ISLAMABAD: Pakistan’s Economic Coordination Committee (ECC) has raised serious concerns over the persistent failure of power distribution companies (DISCOs) to reduce transmission and distribution (T\&D) losses, despite recent governance reforms and the reconstitution of their boards.

During a recent meeting, the ECC expressed dismay over the inability of DISCOs to meet their assigned loss reduction targets. Of particular concern was the performance of Lahore Electric Supply Company (Lesco), whose losses have reportedly increased over the past year.

The committee emphasized the urgent need for comprehensive reforms to curb inefficiencies and operational weaknesses. It was informed that except for Hyderabad Electric Supply Company (Hesco) and Sukkur Electric Power Company (Sepco), the boards of all DISCOs have been restructured in line with the State-Owned Enterprises (Governance and Operations) Act, 2023.

Reconstituted boards of Faisalabad Electric Supply Company (Fesco), Islamabad Electric Supply Company (Iesco), Lesco, Multan Electric Power Company (Mepco), Hazara Electric Supply Company (Hazeco), and others were expected to drive strategic improvements. However, the ECC noted that progress remained unsatisfactory.

The Power Division briefed that performance monitoring, led by the Pakistan Power Management Company (PPMC), was ongoing and supported by strategic roadmaps signed in February 2025. These roadmaps outlined objectives for T\&D/AT\&C loss reduction, bill recovery, theft control, and system upgrades, among others.

To achieve these targets, DISCOs have developed structured action matrices, including feeder and transformer upgrades, grid expansions, installation of advanced metering infrastructure (AMI), and deployment of aerial bundled cables (ABC).

Despite these efforts, the ECC stressed the need for urgent interventions to reverse negative trends and align DISCO operations with national power sector goals. Reconstitution summaries for Hesco and Sepco are still under final review by the Prime Minister’s Office.

Story by Zafar Bhutta

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