The World Bank is collaborating with the Pakistani government to enhance private sector involvement in power distribution, beginning with high-performing distribution companies (Discos). However, the initiative faces challenges due to the poor financial health of most Discos, which reported significant losses in FY23. Concerns over job security, tariff increases, and regulatory clarity hinder private investment. Despite some Discos achieving over 90% collection rates, others, like QESCO and SEPCO, showed alarming low recovery rates. The sector also grapples with aging infrastructure and high operational losses, contributing to a growing circular debt of Rs160.4 billion in FY23.