MEPCO swings to profit after Rs37bn turnaround in two years

July 08, 2026 (MLN): In a major turnaround for Pakistan's power sector, the Multan Electric Power Company (MEPCO) has returned to profitability after reversing more than Rs37 billion in losses in just two years.

This underscores the government's push to improve the financial health of state-owned power distribution companies.

According to a statement issued by the Ministry of Energy (Power Division) on Wednesday, MEPCO posted a profit of Rs1.05 billion in FY2025-26, compared with a loss of Rs36 billion in FY2023-24.

This marked one of the strongest financial recoveries among the country's distribution companies (DISCOs).

The ministry said the improvement was the result of sustained operational and governance reforms rather than a one-time accounting adjustment, describing the recovery as a model for broader restructuring of Pakistan's power distribution sector.

A key contributor to the turnaround was a significant improvement in operational efficiency. MEPCO reduced its line losses to 11.9% from 15.2% over the two-year period, while recovery of billed amounts improved to 100.8% from 98.6%, reflecting stronger bill collection, lower electricity theft and improved consumer compliance.

The ministry attributed the performance to a series of structural reforms introduced under the leadership of Federal Minister for Power Sardar Awais Ahmed Khan Leghari.

These measures included the appointment of an independent board of directors insulated from day-to-day administrative interference, stronger policy oversight and performance monitoring by the Power Division, wider automation and meterization of the electricity network, and greater emphasis on customer service.

According to the ministry, the reforms represent a shift away from ad hoc administrative interventions toward governance-led and technology-driven management aimed at improving operational performance and financial sustainability.

The government said MEPCO's recovery is intended to serve as a blueprint for reforming other power distribution companies, with similar governance and technology initiatives being rolled out across the sector.

The broader reform agenda is aimed at reducing inefficiencies, improving recoveries, curbing electricity theft and helping contain the power sector's circular debt, which has remained one of Pakistan's most persistent fiscal and energy-sector challenges.

The ministry said expanding these reforms across other DISCOs would support the government's objective of placing the power sector on a more sustainable financial footing while improving service delivery and operational performance.

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