ISLAMABAD: The Multan Electric Power Company has posted a net profit of Rs1.05 billion for the fiscal year 2025-26, marking a significant turnaround from the Rs36 billion loss recorded in 2023-24, according to the Ministry of Energy (Power Division).
The ministry attributed the recovery of one of Pakistan’s largest power distribution companies to a series of governance and operational reforms implemented under the leadership of Federal Minister for Power Sardar Awais Ahmed Khan Leghari.
According to the ministry, the turnaround was gradual and sustainable rather than the result of a one-time adjustment.
During the period, MEPCO reduced its line losses from 15.2% to 11.9%, while recovery rates improved from 98.6% to 100.8%, reflecting stronger billing systems, reduced electricity theft, and improved consumer confidence.
The ministry said the company’s improved financial performance was driven by a comprehensive reform programme that included the appointment of an independent Board of Directors insulated from day-to-day administrative interference, consistent policy guidance and performance monitoring, automation and meterisation of the distribution network, and a renewed focus on customer service.
Officials described the transformation as a shift from ad hoc administrative interventions to a governance-led reform model aimed at improving the operational efficiency of Pakistan’s power distribution companies (DISCOs).
The ministry stated that MEPCO’s performance should serve as a model for other distribution companies, adding that similar reforms based on independent governance, transparency, and technology-driven monitoring are being implemented across the power sector as part of broader efforts to reduce circular debt and place the electricity sector on a sustainable financial footing.
MEPCO is one of Pakistan’s ten state-owned electricity distribution companies operating under the administrative control of the Ministry of Energy (Power Division). The utility supplies electricity to 13 districts of South Punjab and functions under the Companies Act 2017 and the Public Sector Companies (Corporate Governance) Rules, 2013, through a government-appointed Board of Directors.
