ISLAMABAD: The Lahore Electric Supply Company (LESCO) has narrowed its NEPRA-related financial gap from Rs79 billion to approximately Rs. 21 billion over the past two years, delivering cumulative savings of more than Rs58 billion for the national exchequer.
In the same period, the Company’s recovery rate climbed to 101.05 percent, surpassing the regulatory benchmark of 100 percent set by NEPRA for the first time.
Distribution losses fell from 15.8 percent to 11.86 percent, an unprecedented four-percentage-point reduction that stands as the largest two-year loss reduction achieved by any electricity distribution company in Pakistan’s history.
The scale of this achievement is significant. As Pakistan’s largest DISCO, with an annual revenue base exceeding Rs1 trillion, every one-percentage-point reduction in LESCO’s losses translates into an estimated Rs10 billion in financial improvement. A four-point cut therefore represents one of the single largest efficiency gains recorded anywhere in the power distribution sector.
Federal Minister for Power Sardar Awais Ahmed Khan Leghari has cited LESCO’s performance as proof that sustained, data-driven oversight delivers results. The Minister has personally monitored DISCO-wise loss and recovery trends on a regular basis, pushing management teams to meet targets and holding field formations accountable for on-ground enforcement.
Over the two fiscal years 2023–24 to 2025–26, these achievements were driven by the vision of Prime Minister Muhammad Shehbaz Sharif, the leadership of Federal Minister Sardar Awais Ahmad Khan Leghari, and a combination of dynamic policymaking, an independent and empowered Board of Directors, network automation and modernisation, continuous performance monitoring, and customer-centric reforms – collectively transforming LESCO into a more efficient, financially stable, and performance-driven power distribution company.
The turning point reflects the broader reform architecture put in place by the Ministry of Energy (Power Division): continuous performance monitoring of all DISCOs, digitisation of billing and recovery systems, clear policy guidelines for loss reduction and anti-theft enforcement, and a renewed focus on customer facilitation and service delivery. The Ministry’s appointment of independent, professional Boards of Directors, coupled with a firm policy of non-interference in day-to-day operations, has allowed DISCO management the autonomy to plan and execute strategically without political or administrative pressure.
LESCO’s results confirm that empowered management, consistent oversight, and depoliticised governance can materially improve the financial health of Pakistan’s power sector, easing the burden of circular debt and strengthening the case for similar reform across other DISCOs.