ISLAMABAD — The Gujranwala Electric Power Company (GEPCO) has reported a significant reduction in line losses, closing the financial year 2025–26 with a rate of 9.80 percent. This marks a decrease from the previous year’s 10.43 percent, resulting in substantial savings of Rs. 5.2 billion.
What Happened
GEPCO’s achievement in reducing line losses to single digits is a noteworthy development in Pakistan’s energy sector. The company, which serves a large portion of the Punjab province, managed to lower its line losses from 10.43 percent in the previous financial year to 9.80 percent in 2025–26. This reduction has translated into savings of Rs. 5.2 billion, which is a significant financial improvement for the company.
In addition to reducing line losses, GEPCO reported a recovery rate of over 100 percent. This indicates that the company has been able to collect more revenue than the energy it supplied, a rare achievement in the country’s power sector. Furthermore, GEPCO has maintained a zero share in the national Circular Debt, which is a persistent issue in Pakistan’s energy industry.
These achievements reflect the company’s efforts to enhance operational efficiency and financial management. GEPCO has been implementing various measures to curb electricity theft and improve billing efficiency, contributing to these positive outcomes.
Background
Line losses in the electricity distribution sector refer to the energy lost during transmission and distribution. These losses can occur due to technical issues, such as resistance in wires, as well as non-technical issues like electricity theft. Historically, Pakistan’s power sector has struggled with high line losses, contributing to financial losses and circular debt.
The circular debt issue in Pakistan’s power sector arises when distribution companies fail to recover their costs, leading to unpaid dues to power producers and fuel suppliers. This debt has been a significant challenge for the government and has impacted the financial sustainability of the energy sector.
Efforts to reduce line losses have been a focus for successive governments and energy companies, aiming to improve efficiency and financial viability. GEPCO’s recent performance is part of this broader effort to address systemic issues in the sector.
Why It Matters
GEPCO’s reduction in line losses and financial savings have several implications for Pakistan’s energy sector and economy. Firstly, the decrease in line losses contributes to more efficient energy distribution, reducing the overall cost of electricity for consumers and the government. This efficiency can lead to more stable electricity prices and potentially lower tariffs for consumers.
Financially, the Rs. 5.2 billion savings enhance GEPCO’s ability to invest in infrastructure improvements and modernization efforts. These investments are crucial for maintaining reliable electricity supply and supporting economic growth in the region.
Moreover, GEPCO’s zero share in the national Circular Debt is a positive indicator of its financial health and management practices. It sets a benchmark for other distribution companies in the country to emulate, potentially leading to broader improvements in the sector.
On a national level, reducing line losses and circular debt are essential for ensuring the long-term sustainability of Pakistan’s energy sector. These improvements can attract investment, boost economic growth, and enhance the country’s energy security.
Key Takeaways
- GEPCO reduced its line losses to 9.80 percent in the financial year 2025–26.
- The company achieved savings of Rs. 5.2 billion through improved efficiency.
- GEPCO maintained a recovery rate of over 100 percent and a zero share in circular debt.
- These achievements contribute to financial stability and operational efficiency in the energy sector.
- GEPCO’s performance sets a positive example for other distribution companies in Pakistan.
Source Attribution
This article is based on official government statements, press releases, and public communications from relevant authorities.
