Pakistan’s largest power distribution company, the Multan Electric Power Company (MEPCO), posted a profit of Rs1.05 billion in the fiscal year 2025-26, reversing a loss of Rs36 billion recorded in 2023-24, following a broad reform programme led by the Ministry of Energy’s Power Division.
According to the ministry’s report today, the improvement represents a financial turnaround of more than Rs37 billion over two years, with the ministry attributing the recovery to structural reforms rather than a temporary correction.
The transformation was driven by the appointment of an independent board of directors insulated from routine administrative interference, sustained policy oversight, enhanced performance monitoring, automation and meterisation of the power network, and greater emphasis on customer service. It said the reforms marked a transition from short-term administrative measures to governance-based restructuring across the power distribution company.
Operational indicators also showed steady progress during the period. Line losses declined to 11.9% from 15.2%, while the recovery rate improved to 100.8% from 98.6%, reflecting stronger bill collection, lower electricity theft, and improved consumer confidence.
The Ministry of Energy (Power Division), under the leadership of Federal Minister for Power Sardar Awais Ahmed Khan Leghari, said MEPCO’s performance demonstrated the effectiveness of governance reforms and technology-driven monitoring. It added that similar measures were being implemented across other power distribution companies (DISCOs) as part of broader efforts to reduce circular debt and place Pakistan’s power sector on a more sustainable financial footing.