ISLAMABAD: Pakistan’s power sector losses in state-run power distribution companies (Discos) dropped by Rs192 billion in the past year -- from Rs591 billion in FY2023-24 to Rs399 billion in FY2024-25 -- which Federal Power Minister Awais Leghari on Thursday hailed as a “historic success” in energy sector reforms.
“This Rs591 billion loss could have gone to national development,” Leghari told a press conference, crediting reforms aimed at curbing electricity theft, improving governance and raising recovery rates for the turnaround. “The prime minister and the entire cabinet were extremely concerned about the bleeding in this sector.”
Leghari said the recovery rate of distribution companies (Discos) rose from 92.4pc to 96.4pc over the past fiscal year, although Rs315 billion in bills remains unpaid. Power theft, which cost Rs276 billion last year, was cut by Rs11 billion. Lahore Electric Supply Company alone slashed its losses by Rs60 billion. “One industrial unit can steal more power in a month than a whole village consumes in five years,” he noted.
Reforms in governance were key, he said, with merit-based appointments on Discos boards and minimal interference by the Power Division. However, Leghari acknowledged continued struggles in Sindh-based utilities, citing legal bottlenecks that stalled similar progress.
“Better governance could have slashed losses even further,” he added, saying new board appointments are expected soon, as tenures of the Sindh-based power companies are concluding in a month.
Leghari also addressed the longstanding issue of capacity payments to Independent Power Producers (IPPs), saying that earlier negotiations had saved the country nearly Rs4 trillion.
Talks with some IPPs are still ongoing, especially with wind powers and details would be shared once the discussions conclude. He reiterated the government’s commitment to protecting public interest while restructuring agreements with private power producers.
In a significant update for Karachi, Leghari announced that K-Electric would begin receiving an additional 400MW from the national grid, increasing its supply to 2,000MW — contingent on implementation of a uniform national tariff. “If KE draws more, it must follow the same tariff structure,” he asserted.
Touching on solar energy, the minister said Pakistan is experiencing a solar boom but flagged the need to revise the net metering policy, arguing it currently benefits a small group at the cost of the broader consumer base. A revised policy will be presented to the federal cabinet within two weeks, he said.
The minister noted that the federal government had already eliminated the Pakistan Television (PTV) fee from electricity bills and written to all the four provincial chief ministers requesting the removal of electricity duty.
“Only one chief minister has responded so far. Once the remaining replies are received, the matter will be taken up with the prime minister,” he said.