MEPCO returns to profit after PKR 35 billion financial turnaround

Pakistan's Multan Electric Power Company (MEPCO) has returned to profitability after reducing accumulated losses by PKR 34.95 billion over the past two years, marking a financial turnaround of more than PKR 37 billion, the Power Division said Tuesday.

According to a Power Division spokesperson, MEPCO moved from a loss of PKR 36 billion to a profit of PKR 1.05 billion, with the improvement attributed to reforms introduced under the leadership of Federal Minister for Power Sardar Awais Ahmad Khan Leghari.

The spokesperson said the utility's transmission and distribution losses fell to 11.9% from 15.2% during the two-year period. Meanwhile, its recovery rate improved to 100.8% from 98.6%.

The improved financial performance was driven by more effective billing, stronger enforcement against electricity theft and a broader reform agenda, the spokesperson said.

The spokesperson added that MEPCO's turnaround was also supported by stronger oversight, wider use of modern technology, increased automation and an independent board of directors, which improved governance and operational efficiency.

The Power Division described MEPCO's recovery as a model for reform across Pakistan's electricity distribution sector, saying similar measures focused on independent decision-making, transparency and technology-driven monitoring are being implemented at other power distribution companies.