Pakistan, Jan. 15 -- Pakistan's energy sector reforms are showing clear results as electricity distribution losses fell sharply last fiscal year. Distribution company (DISCO) losses stood at Rs397 billion, Rs242 billion below the IMF's target of Rs649 billion. Circular debt also dropped significantly, easing pressure on the national power system.

The IMF had set limits to control DISCO losses, but tighter financial discipline and governance improvements helped Pakistan outperform expectations. Officials said this marks one of the strongest early signs that reforms are stabilizing the power sector. Consumer protections, including the withholding of Rs363 billion in late payment surcharges, further safeguarded households from extra costs....