ISLAMABAD: Federal Minister for Power, Sardar Awais Ahmad Khan Leghari, has stated that during the fiscal year 2023–24, state-run electricity distribution companies (DISCOs) burdened the country and taxpayers with losses amounting to Rs591 billion.
He said that had these losses been prevented, it would have eased debt repayment and enabled the government to initiate development projects and invest taxpayer money in public welfare.
Addressing a press conference in Islamabad, Leghari emphasized that power theft is not limited to low-income groups; large industries and furnace oil-based plants are also involved. He specifically praised the performance of the Lahore Electric Supply Company (LESCO), stating that it outperformed all other DISCOs by successfully reducing losses and uncovering a major power theft scandal.
He added that some industrial units steal more electricity in a single month than an entire village does in five years. Leghari emphasized the government’s full commitment to improving the power sector, highlighting that serious reform measures have already begun to yield positive results.
He noted that, for the first time, board members of DISCOs were appointed purely on merit, aimed at enhancing institutional performance and governance standards. According to the minister, these reforms have led to a significant reduction in losses, with savings of Rs151 billion recorded compared to the previous year—an achievement he attributed to the government’s focus on good governance and transparency.
Leghari further stated that the crackdown on power theft would continue and that the government would support and protect honest officers and officials leading these efforts, despite pressure and backlash from powerful quarters.
The minister also revealed that Pakistan had successfully reduced power sector losses by Rs191.2 billion during fiscal year 2024–25. Losses stood at Rs590.9 billion in FY2023–24 and were brought down to Rs399.7 billion over the course of a year. He termed this reduction the first of its kind in Pakistan’s history and credited it to governance reforms initiated under the direction of Prime Minister Shehbaz Sharif.
According to Leghari, this turnaround was achieved through a combination of transparent appointments, accountability mechanisms, and improved operational oversight in the country’s ten government-run DISCOs. He emphasized that, for the first time, appointments to DISCO boards and leadership roles were made solely on merit, ending the long-standing practice of political favoritism and personal recommendations. This shift, he said, helped restore public trust and institutional discipline, laying the foundation for performance-based outcomes.
Sharing key financial data, Leghari explained that the massive losses in the previous fiscal year included Rs315 billion in unpaid electricity bills due to weak recoveries, and Rs276 billion due to electricity theft and transmission and distribution (T&D) losses. He stated that the government had raised the national recovery rate from 92.4% to 96.6% over the past year, resulting in substantial fiscal relief. In parallel, stronger monitoring and enforcement led to the recovery of Rs11 billion worth of stolen electricity, with several DISCOs reporting improved performance indicators. LESCO, in particular, played a leading role by saving more than Rs60 billion and uncovering a major electricity theft operation.
Leghari stated that these achievements were made despite resistance from vested interests. He revealed that some influential individuals had initiated inquiries against officials who had taken decisive action against theft. However, the minister reiterated the Prime Minister’s commitment to protecting officers who act with integrity and advance reforms under the government’s anti-theft drive. He stressed that tackling industrial-scale theft is now a key priority, noting that a single furnace-based factory can steal more power in one month than a village consumes in five years. He assured that both small- and large-scale violators would be held accountable as part of the national campaign against electricity pilferage.
In addition to highlighting the financial turnaround, Leghari responded to recent remarks made by Petroleum Minister Ali Pervaiz Malik regarding losses in the RLNG supply chain due to underutilized power plant capacity. Leghari defended the Power Division’s adherence to the Economic Merit Order (EMO), stating unequivocally that any deviation from the EMO would constitute a “grave sin” (gunnah kabeera). He clarified that power plants can only be operated if their cost of generation qualifies under the EMO. If expensive RLNG plants do not meet the merit, they cannot be dispatched. He acknowledged that Malik’s concerns over losses were valid, but pointed out that the contracts in question were signed by previous governments and that, like Independent Power Producer (IPP) contracts, LNG deals must also be reviewed if they are not in the national interest.
The minister also discussed the ongoing review of net metering rates. He said the Power Division has finalized its recommendations and will submit a summary to the federal cabinet within one to two weeks. The aim, he explained, is to ensure that net metering continues to benefit solar consumers without placing an unfair burden on other electricity users.
He added that discussions are underway regarding NEPRA’s recent fuel charge adjustment decision for K-Electric, and the Power Division may request a review, given the cabinet’s policy oversight role. He noted that K-Electric is currently drawing 1,600 megawatts from the national grid and may soon increase that draw to 2,000 megawatts. He stressed that a uniform tariff regime must apply in such circumstances to ensure fairness for all stakeholders.
In another significant policy update, Leghari confirmed that the government will soon submit a summary to the cabinet for approval regarding the Competitive Trading Bilateral Contract Market (CTBCM). He said consultations with the International Monetary Fund (IMF) and other development partners are ongoing to explore how Pakistan’s 7,000-megawatt surplus electricity can be offered at discounted rates to support economic growth and industrial productivity.
Leghari concluded his briefing by emphasizing that the Rs191 billion reduction in losses over a single year demonstrates the impact of determined leadership, institutional meritocracy, and the enforcement of discipline. He affirmed that the government remains fully committed to continuing these reforms despite challenges and pressure from entrenched interest groups. He thanked the DISCO boards, security agencies including the Rangers, and all supporting institutions for their role in achieving these results. He added that the progress made so far marks a turning point in Pakistan’s power sector.
