PM orders renewable energy push, faster power reforms to cut import dependence

Prime Minister Shehbaz Sharif on Tuesday directed authorities to prepare a comprehensive strategy to meet Pakistan’s future energy demand through renewable sources, while accelerating reforms aimed at reducing reliance on imported fuels and curbing electricity theft.

Chairing a review meeting on power sector reforms, the prime minister said increased generation from hydel, solar and biogas sources would help lower electricity production costs and support broader economic growth, according to an official statement from the PM Office.

He instructed authorities to take strict action against those involved in electricity theft, stating that no leniency would be shown in such cases.

The prime minister also ordered disciplinary action against power distribution companies found violating the economic merit order, and called for expedited implementation of smart meters on transformers in areas identified as high-loss zones.

He further directed acceleration of reforms to promote a competitive electricity market and pushed for faster rollout of the wheeling system, under which 400 megawatts of electricity will be supplied to the private sector in the first phase.

Officials informed the meeting that transmission losses in the power sector had declined from 18.3 percent in June 2024 to 15.3 percent in March 2026, while electricity bill recovery improved from 90 percent to 96.46 percent over the same period.

They added that work was underway to introduce private sector participation in three power distribution companies, with the bidding process expected to be completed by November this year.

The briefing also noted that smart meters had been installed on 2,500 loss-making feeders as part of ongoing anti-theft measures.

The meeting was attended by Law Minister Azam Nazeer Tarar, Economic Affairs Minister Ahad Khan Cheema, Finance Minister Muhammad Aurangzeb, Petroleum Minister Ali Pervaiz Malik, Power Minister Sardar Awais Leghari, Privatization Adviser Muhammad Ali, Minister of State for Finance Bilal Azhar Kiani, and senior officials of relevant institutions.