Power distribution companies failed to recover Rs480.6 billion in dues from consumers during 2024-25 due to chronic inefficiencies, lapses in governance, and inadequate enforcement, according to a federal audit report on Pakistan’s power sector.
The audit revealed that, as of June 2024, Rs481 billion remained uncollected from 354,515 active consumers and 121,973 permanently disconnected defaulters. Despite this huge shortfall, DISCOs took minimal action to recover the outstanding amount.
The Ministry of Energy (Power Division) also faced criticism for failing to appoint adequate recovery staff, with only six Tehsildar recovery officers working, despite 60 sanctioned positions.
Among the worst-performing companies, Sukkur Electric Power Company had the largest share of unpaid bills, amounting to Rs218 billion. Other notable figures include Quetta Electric Supply Company (Rs106.7 billion), Hyderabad Electric Supply Company (Rs55.2 billion), and Tribal Areas Electric Supply Company (Rs83.7 billion).
In other regions, Peshawar Electric Supply Company failed to recover nearly Rs12 billion, Faisalabad Electric Supply Company couldn’t collect Rs5.7 billion, and Lahore Electric Supply Company had Rs5.05 billion in outstanding dues.
Despite some better governance in certain regions, the situation remains bleak, with Islamabad Electric Supply Company also reporting Rs66 million in unpaid bills. Auditors pointed out that many of these consumers had been defaulting for over a year, yet DISCOs failed to take legal or administrative actions to recover the funds.
The audit findings suggest that the failure to recover dues not only weakens the financial health of DISCOs but also exacerbates Pakistan’s growing circular debt, which has now surpassed Rs2.6 trillion.
The report highlights that weak internal controls, failure to enforce payment policies, and tolerance for long-term defaults have created a vicious cycle, where DISCOs fail to collect dues, leading to government subsidies or borrowing, and causing ordinary consumers to bear the burden of rising tariffs and frequent power outages.
