PESCO Achieves Historic Turnaround: Reduces Financial Losses by PKR 22 Billion in FY 2024–25
Peshawar Electric Supply Company (PESCO) has achieved a historic milestone by reducing its financial losses by Rs. 22 billion in the fiscal year 2024-25 — the first significant improvement in the last five years. This remarkable turnaround is the result of bold reforms and strong administrative measures under the visionary leadership of Chairman/BOD Members PESCO.
According to official figures, PESCO had been facing consistent financial setbacks over the past several years. Financial losses had escalated from Rs. 42 billion in FY 2020-21 to Rs. 77 billion in 2021-22, Rs. 109 billion in 2022-23, and reached an alarming Rs. 142 billion in 2023-24. However, the appointment of the new Board of Directors brought a wave of strategic changes. By the end of FY 2024-25, financial losses were successfully brought down to Rs. 122 billion — reflecting a savings of Rs. 22 billion as compared to fiscal year 2023-24 for the company.
Chairman Pesco Board of Directors, Mr. Himayatullah Khan, commended Pesco management for their tireless efforts in steering the company toward financial recovery. “Despite having only 43% of the required human resource to serve 4.5 million consumers & Pesco employees have continued to go above and beyond to serve their communities,” said the Chairman BOD.
Moreover, Pesco has achieved a noticeable reduction in transmission and distribution (T&D) losses — bringing the figure down to 36.81% in the current fiscal year from 37.99% in the previous year. Simultaneously, the overall Aggregate Technical & Commercial (AT&C) losses have been reduced to 41.62 percent during FY 2024-25 in comparison to 42.81 percent in FY 2023-24. Moreover, revenue collection from private consumers surged to an impressive 91.69 percent as compared to 90.6 percent in the previous year, reflecting enhanced operational efficiency and consumer compliance thus improving financial health of the company.
One of the first major steps taken, by the Chairman Board of Directors, was introducing targeted policies for the industrial & commercial sector. An exclusive 24-installment payment plan was offered to industries whose electricity connections were disconnected due to unpaid bills, paving the way for revival of operations and increased revenue for PESCO. Chairman Board of Directors, Himayatullah Khan, accompanied by Board Members Mr. Fazal-e-Khaliq & Saima Akbar, held numerous direct meetings with industrial stakeholders to resolve pressing issues. In addition, new industrial grids were constructed, and overloaded industrial feeders were bifurcated to ensure smoother supply.
In the past summer of 2024, PESCO faced unprecedented challenges with 316 attacks on Pesco grid stations by protestors attempting to forcibly energize high-loss feeders, resulting in approximately Rs. 3 billion financial loss by forcefully supplying electricity to high loss feeders/areas. These attacks drastically declined to only 43 incidents from May 2025 to July 2025 as Chairman Pesco held several meetings with Chief Minister KP, Chief Secretary KP and district administration to deal with the issue.
The establishment of Hazara Electric Company (HAZECO) — a new and independent distribution company carved out of PESCO is a transformative step, steered by the present Board of Directors Pesco, reflects a strong commitment to decentralization and improved service delivery. HAZECO will operate as a separate entity focused solely on the needs of electricity consumers in the Hazara division. Because of the relentless efforts and visionary leadership of the PESCO Board, HAZECO became fully operational within a remarkable span of just six months.
Despite facing an increasingly volatile law and order situation in the region, PESCO employees have shown unwavering dedication and resilience in delivering uninterrupted public service. PESCO’s management has taken all necessary steps to ensure the safety and morale of its workforce, including coordinating with law enforcement agencies and providing additional logistical support to frontline staff.
PESCO has successfully completed Phase 1 of the installation of AMR meters across its region, with a focus on replacing the existing 3-phase meters that primarily serve industrial connections. About 62,294 connections, which account for almost 50% of PESCO’s overall recovery, that included 3-phase industrial, tube wells and commercial connections, have been replaced with AMR meters. This initiative is in line with the industrial reforms introduced by Chairman Pesco Board of Directors who envisions a streamlined and more efficient system for the industrial sector.
During the fiscal year 2024-25, PESCO’s operation teams successfully removed 40,123 illegal direct connections (kundas), marking a substantial step towards reducing energy losses and ensuring fair distribution of electricity. In the course of these operations, 1872 individuals were arrested on the spot for illegally tapping electricity from Pesco distribution network. PESCO also initiated legal proceedings against violators, requesting 32739 FIRs, out of which 9720 FIRs have already been lodged by police. As part of the punitive measures, PESCO has imposed fines totaling Rs. 1.3 billion on individuals found guilty of electricity theft.
