Story perspectives

Pakistan's Power Sector Faces Rs2.393 Trillion Debt Crisis

1/2/2025

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Summary

Story summary

Pakistan's power sector struggles with circular debt projected at Rs2.393 trillion by June 30, 2024, due to high T&D losses and inadequate bill recovery.
DISCOs contributed Rs591 billion to this debt in FY2023-24, with T&D losses reaching 18.31%, surpassing NEPRA's target.
Consumers are burdened with a Circular Debt Surcharge of Rs3.23 per unit, increasing financial pressure.
NEPRA urges immediate reforms for enhanced DISCO autonomy and governance to tackle systemic inefficiencies.

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Story summary

Pakistan's power sector struggles with circular debt projected at Rs2.393 trillion by June 30, 2024, due to high T&D losses and inadequate bill recovery.
DISCOs contributed Rs591 billion to this debt in FY2023-24, with T&D losses reaching 18.31%, surpassing NEPRA's target.
Consumers are burdened with a Circular Debt Surcharge of Rs3.23 per unit, increasing financial pressure.
NEPRA urges immediate reforms for enhanced DISCO autonomy and governance to tackle systemic inefficiencies.