The Lahore Electric Supply Company (LESCO) has clarified that it has significantly reduced its circular debt over the past two years, rejecting recent media reports that suggested otherwise.
In a statement shared with ProPakistani, LESCO Chief Executive Officer Engineer Muhammad Ramzan Butt said the company’s circular debt declined from Rs. 339 billion in FY2023-24 to Rs. 203 billion in FY2025-26, reflecting a reduction of Rs. 136 billion.
According to the CEO, the improvement represents one of the most significant reductions achieved by a power distribution company and demonstrates progress in addressing the country’s broader circular debt challenge.
LESCO attributed the improvement to a combination of lower transmission and distribution losses, near-100 percent bill recovery, and the timely settlement of electricity purchase obligations during FY2024-25. The company also noted that circular debt figures for FY2021-22 and FY2022-23 were provisional and were later revised after audited financial statements became available.
The utility said the turnaround was achieved through reforms introduced under the Ministry of Energy (Power Division), oversight by its Board of Directors, and the leadership of CEO Muhammad Ramzan Butt. These measures included stricter action against electricity theft, a zero-tolerance policy on overbilling, and improvements in governance and operational efficiency.
Looking ahead, LESCO has outlined a three-year strategy covering FY2026-27 to FY2028-29, with the goal of reducing its circular debt to below Rs. 150 billion.
The company said it will continue focusing on lowering line losses, maintaining high bill recovery rates, improving transparency and accountability, and enhancing customer services as part of its efforts to strengthen the financial health of Pakistan’s power sector.
