LESCO Achieves Record Recovery Rate, Cuts Power Losses to Historic Low

LESCO recovery rate crosses 101% for the first time as power losses fall to 11.86%, marking a major milestone in Pakistan’s power sector reforms.

LAHORE: The Lahore Electric Supply Company (LESCO) has achieved a historic milestone by recording a 101.05 percent recovery rate, surpassing the National Electric Power Regulatory Authority (NEPRA) benchmark of 100 percent for the first time.

The company also reduced its distribution losses from 15.8 percent to 11.86 percent, representing a four-percentage-point decline. Officials say this is the largest two-year reduction in power losses ever achieved by any electricity distribution company (DISCO) in Pakistan.

As Pakistan’s largest electricity distribution company, with an annual revenue base exceeding Rs1 trillion, every one-percent reduction in distribution losses generates an estimated Rs10 billion in financial savings. The latest improvement is therefore considered one of the biggest efficiency gains in the country’s power sector.

Federal Minister for Power Sardar Awais Ahmed Khan Leghari described LESCO’s performance as evidence that continuous, data-driven monitoring and accountability can significantly improve the financial health of electricity distribution companies.

The minister has regularly reviewed DISCO-wise recovery and loss figures, directing management teams to meet performance targets while ensuring strict enforcement against electricity theft and operational inefficiencies.

Officials said the improvements were achieved during the 2023-24 to 2025-26 fiscal years under the leadership of Prime Minister Shehbaz Sharif and Power Minister Sardar Awais Ahmed Khan Leghari.

The reforms included modernising the power distribution network, introducing automation, strengthening governance through independent Boards of Directors, continuously monitoring operational performance, and implementing customer-focused initiatives.

The Ministry of Energy’s broader reform strategy also emphasized digitisation of billing and recovery systems, stricter anti-theft measures, transparent governance, and improved customer services across all electricity distribution companies.

Officials said the appointment of independent professional boards and a policy of limiting political interference in operational matters gave DISCO management greater autonomy to implement long-term reforms.

According to the ministry, LESCO’s performance demonstrates that professional management, institutional autonomy, and sustained oversight can substantially improve operational efficiency, reduce circular debt, and provide a model for reform across Pakistan’s power distribution sector.