ISLAMABAD, Jul 10 (APP): Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari Thursday said that government’s ongoing efforts to reform the energy sector are yielding significant positive results, leading to reduce losses and improve performance across power distribution companies (DISCOs).
Addressing a press conference, he said that the government has achieved an unprecedented reduction of Rs191 billion in power sector losses within just the first year of its reform agenda.
The minister said this success was made possible through strict reforms, improved transparency, and a clear focus on merit-based governance across the power sector. This achievement marks the first time in Pakistan’s history that such a significant reduction in the power sector’s financial burden has been realized in such a short period.
Awais said the ten government-run power distribution companies (DISCOs) had imposed a staggering Rs591 billion in losses on the national exchequer and taxpayers during the fiscal year 2023–24. These losses were primarily due to non-recoveries and electricity theft.
He noted that through targeted interventions, the government reduced losses by Rs 191 billion, bringing total losses down to Rs 399 billion. Had these losses not occurred, he added, the same funds could have been utilized for debt servicing, national development projects, and improving the quality of life for citizens.
Leghari said that the root causes of inefficiency were systematically addressed over the past year, including politicized appointments and board member selections based on connections rather than merit. For the first time, he said, board members and senior officials in DISCOs were appointed strictly on merit, free from political or personal influence.
He stressed that the era of politically motivated postings had ended and the Power Division no longer accepts recommendations for appointments.
“These reforms reflect Prime Minister Shehbaz Sharif’s commitment to transparent governance and strengthening public institutions,” he added.
The minister shared that recovery losses amounted to Rs. 315 billion last year, but recovery performance improved to 96.6%, up from 92.4%—a record in Pakistan’s power sector.
Leghari further disclosed that electricity theft, which amounted to Rs276 billion last year, had been partially curbed, resulting in a Rs11 billion reduction in theft-related losses due to effective enforcement and reduced line losses by several companies.
He said a major success story was Lahore Electric Supply Company (LESCO), which alone contributed to Rs. 60 billion in reduced losses and lauded the company for exposing a major electricity theft scandal involving industrial entities.
The minister acknowledged the role of various departments including Rangers, Army units, and civil administration for supporting these reforms.
Leghari warned that some influential elements are now using their connections within government departments to launch inquiries against officials involved in anti-theft operations. However, he affirmed the Prime Minister’s resolve to stand behind these field officers and continue the fight against power theft. He emphasized that reform is not an option but a necessity for Pakistan’s economic stability.
Replying to a question about solar net metering, the Minister clarified that while solar energy remains a key pillar in Pakistan’s renewable energy strategy, the country is going through a solar revolution.
He stated that net metering has resulted in over 6,500 MW being connected to the national grid. Another 8,000 MW space has been allocated in the future IGCEP plan for net-metered solar projects. The government is not restricting rooftop solar installations but seeks balanced regulation to ensure fairness to all electricity consumers.
He noted that solar panels, previously imported duty-free, now have a uniform tax policy to balance local production and imports.
Leghari reaffirmed the government’s resolve to maintain reform momentum and reduce losses further in the coming fiscal year, ultimately aiming to bring annual losses to below Rs 100 billion.
These achievements are part of the government’s broader strategy to overhaul the energy sector, which includes measures such as privatization of DISCOs, renegotiation of contracts with Independent Power Producers (IPPs) to achieve savings, and a shift towards more sustainable and affordable energy sources. The government aims to establish a competitive electricity market and continue reducing electricity tariffs for consumers.
At the end, a video from a recent raid by LESCO team uncovering industrial-scale power theft was also showed.