Nepra’s State of the Industry Report 2025 highlights that Pakistan’s power sector remains inefficient despite more than three decades of reforms. The regulator points to serious operational and governance weaknesses in public-sector power plants, distribution companies (Discos), and transmission systems, which continue to undermine economic growth and consumer confidence. The report notes underutilised generation capacity, poor use of transmission lines, and high transmission and distribution losses as key drivers of circular debt. Several thermal, nuclear, and Thar coal-based plants are operating well below capacity, while the Matiari–Lahore HVDC line is also underused. Nepra identifies KE, Pesco, Hesco, Sepco, and Qesco as the weakest performers, citing issues such as overbilling, load-shedding, delayed connections, and weak recovery, stressing that reforms and accountability are essential.
