LESCO Reports Major Reduction in Circular Debt, Targets Further Improvement
The Lahore Electric Supply Company (LESCO) says it has significantly reduced its circular debt over the past two years, highlighting improvements in bill recovery, operational efficiency, and financial management.
According to a statement issued by the company, LESCO’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 during the period.
LESCO Chief Executive Officer Engineer Muhammad Ramzan Butt said the reduction represents an important milestone, describing circular debt as a national challenge that requires consistent reforms and improved financial discipline.
The company attributed the progress to lower electricity distribution losses, near-100 percent bill recovery, and the timely settlement of electricity purchase obligations during the previous financial year.
LESCO also clarified that some circular debt figures reported for FY2021-22 and FY2022-23 were provisional and were later revised after audited financial statements became available.
According to the company, the improvement was supported by reforms introduced under the Ministry of Energy (Power Division), oversight from its Board of Directors, and measures aimed at strengthening governance and operational performance.
The utility said it has adopted a zero-tolerance policy against electricity theft and overbilling while continuing efforts to improve transparency, accountability, and customer service.
Looking ahead, LESCO has developed a three-year business strategy covering FY2026-27 to FY2028-29. Under this plan, the company aims to reduce circular debt to below Rs. 150 billion through continued improvements in operational efficiency and revenue collection.
The management stated that future priorities include reducing line losses, maintaining strong bill recovery, enhancing governance, and providing more reliable electricity services to consumers as part of broader efforts to strengthen Pakistan’s power sector.
