Prime Minister Shehbaz Sharif on Tuesday praised the sharp reduction in losses incurred by power distribution companies (DISCOs), calling it a milestone achievement that could pave the way for privatization of these entities something he described as a first in decades.
Chairing a meeting of the Cabinet Committee on Energy at the Prime Minister’s House, Shehbaz said the financial turnaround marked a turning point for Pakistan’s power sector.
“The reduction in losses marks a turning point for the energy sector, making the road to privatization smoother and more realistic,” he noted, according to a statement from the Prime Minister’s Office.
He commended Federal Minister for Power Sardar Owais Ahmad Leghari, Federal Secretary Dr Muhammad Fakhre Alam, and their team for driving reforms and ordered that letters of appreciation be sent to CEOs of top-performing DISCOs.
A briefing by the Power Division revealed that DISCO losses had fallen by Rs193 billion, while overall financial improvements totaled Rs242 billion. LESCO and MEPCO were highlighted as standout performers. Meanwhile, the circular debt flow remained at Rs780 billion.
As part of a broader policy overhaul, the Cabinet Committee approved changes to the National Electricity Plan Strategic Directive 87. The revised plan sets wheeling charges at Rs12.55 per kilowatt, and now includes bidding price components in project evaluation criteria.
The committee was also briefed on the completion of the Independent System and Market Operator (ISMO) operationalization. In a bid to enable more market-oriented electricity distribution, Market Operations departments have now been established across the National Transmission and Dispatch Company (NTDC) and several DISCOs.
