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ISLAMABAD, May 23 (APP):A meeting of the Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, was held on Friday to review peak-hour electricity tariffs, recent reductions in power rates, and examine the ongoing load shedding issues in Balochistan.
The meeting was attended by Senators Syed Shibli Faraz, Syed Kazim Ali Shah, Poonjo Bheel, Haji Hidayat Ullah Khan, Asad Qasim, Minister for Power, and former Senator Ismail Buledi, said a press release.
The Ministry of Power informed the Committee that total outstanding receivables from the provinces amounted to Rs. 161 billion as of March 31, 2025. The breakdown is as follows: Khyber Pakhtunkhwa – Rs.10 billion, Punjab – Rs.42 billion, Sindh – Rs.67 billion, and Baluchistan – Rs.42 billion. It was also noted that, except for Khyber Pakhtunkhwa, none of the provinces have signed the proposed reconciled statement.
The Chairman expressed strong displeasure over the negligence displayed at the provincial level and directed immediate recovery of the outstanding dues.
The Secretary of the Power Ministry announced that the government has decided to privatize three power distribution companies (DISCOs) — Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO) — in the first phase. In the second phase, Lahore Electric Supply Company (LESCO) (LESCO), Multan Electric Power Company (MEPCO), and Hyderabad Electric Supply Company (HESCO) will also be privatized.
The Committee expressed serious concern regarding the future of employees and instructed the Ministry to develop employee-friendly policies, including voluntary early retirement options, to safeguard their interests.
The Secretary further added that investor engagement, roadshows, and restructuring processes regarding privatization of power distribution companies are currently underway and are expected to be completed by January 2026.
The Chairman, NEPRA briefed the Committee on the recent reduction in electricity rates announced by the Prime Minister — Rs. 7.41 per unit. He clarified that this reduction includes a Rs. 1.13 per unit fuel adjustment, which fluctuates on monthly basis against the exchange rate and KIBOR.
The Committee also discussed the high unit cost of electricity during peak hours. The Ministry explained that to meet nighttime demand, power generation companies must operate Residual Fuel Oil (RFO) plants, which are costly. These costs are passed on to consumers. The Chairman strongly criticized this practice and urged a transition to more efficient plants to reduce the burden on the public.
The Committee was also briefed on the installation of 800,000 AMI (Advanced Metering Infrastructure) meters in Islamabad, Rawalpindi, and Taxila. These smart meters installation have led to a 2% reduction in line losses. Ministry officials highlighted the meters’ key features, including remote monitoring and control, theft detection, and load management.
The Minister for Power stated that Pakistan has approximately 30 million electricity users, and all will eventually be transitioned to AMI meters.
The Committee also addressed the issue of up to 18 hours of load shedding in the Makran region during the summer. The Committee directed Quetta Electric Supply Company (QESCO) to urgently address the matter and provide immediate relief to the affected population.