What the minister told the Senate
Power Minister Awais Ahmed Khan Leghari told the Senate on Tuesday that electricity distribution losses at the country’s distribution utilities (DISCOs) now total Rs325 billion a year, against Rs591 billion for 2024. He was answering a calling attention notice from senator Abid Sher Ali.
He also said the stock of unpaid power-sector bills known as circular debt—money owed across generators, fuel suppliers and distributors—has eased from Rs2.4 trillion to roughly Rs1.6 trillion across about two and a half years. Electricity distribution losses, he argued, are easing the state’s fiscal load as well as the sector’s arrears.
Losses, budget support and circular debt
Leghari put last year’s DISCO shortfall at Rs360 billion and this year’s figure at Rs325 billion. That path, he said, has cut the federal budget strain by nearly Rs200 billion.
Power Division support from the budget has likewise eased: about Rs750 billion now, after Rs1,180 billion in 2024. On circular debt, he said Islamabad refinanced Rs1.2 trillion. Under the same plan, the Rs3.23 per-unit debt-servicing surcharge on bills would end within four years, and the leftover arrears would be cleared as well.
Subsidies for low-use households
Users billed for no more than 200 units a month pay close to Rs13 a unit while the true cost is about Rs35, he said—relief of roughly 60 to 65 per cent. That group has grown from 10 million to 22.5 million households over two years.
Officials are designing income-linked targeting, he added, which may raise the cap to 250 units and tie help to how much a home uses each month. He expected that work to finish in about one to one-and-a-half months.
Timeline: what has happened so far
- 2024: DISCO yearly losses stood at Rs591 billion; Power Division budget support was Rs1,180 billion.
- Last year (as cited in the Senate): Annual DISCO losses were put at Rs360 billion.
- Past ~2½ years: Circular debt moved from Rs2.4 trillion toward about Rs1.6 trillion; Rs1.2 trillion was refinanced.
- This year / Oct 27 Senate reply: Losses cited at Rs325 billion; budget support near Rs750 billion; subsidy redesign said to need roughly 1–1.5 months.
Aasan alfaaz mein
Power minister ne Senate mein bataya ke DISCOs ke saalana nuqsanat ab Rs325 arab hain, pehle Rs591 arab the. Circular debt bhi Rs2.4 trillion se lagbhag Rs1.6 trillion tak giri hai. Bill par Rs3.23 per unit surcharge char saal mein khatam karne ka plan hai. Kam bijli istemal karne wale ghar ab bhi heavy subsidy le rahe hain, aur targeting ka naya nizam 1–1.5 mahine mein taiyar hone ki umeed hai.
