Power Sector Losses Drop by Rs. 192 Billion in a Year: Minister

Pakistan’s state-run power distribution companies (Discos) have cut their financial losses by Rs. 192 billion over the past year, Federal Power Minister Awais Leghari announced on Thursday.

Addressing a press conference, Leghari described the reduction from Rs. 591 billion in FY24 to Rs. 399 billion in FY25 as a “historic success,” attributing the improvement to a series of reforms targeting electricity theft, governance, and bill recovery.

“These losses could have been used for national development,” Leghari said. He credited the prime minister and cabinet for prioritizing the issue.

According to the minister, the recovery rate for Discos improved from 92.4 percent to 96.4 percent over the last fiscal year, though Rs. 315 billion in unpaid bills remain outstanding. Efforts to combat power theft also yielded results, with losses from theft dropping by Rs. 11 billion to Rs. 265 billion. The Lahore Electric Supply Company (LESCO) alone managed to cut its losses by Rs. 60 billion.

Leghari emphasized the impact of governance reforms, including merit-based appointments to Disco boards and reduced interference from the Power Division. But utilities in Sindh continue to face challenges due to legal obstacles.

“Stronger governance could have delivered even greater savings,” he noted. New board appointments are expected soon as the tenures of Sindh-based companies near completion.

The minister also addressed the issue of capacity payments to Independent Power Producers (IPPs), stating that renegotiated agreements have already saved the country nearly Rs. 4 trillion. Talks with some IPPs, particularly in the wind energy sector, are ongoing, with further details to be shared once negotiations conclude.

Leghari announced that K-Electric will soon receive an additional 400 megawatts from the national grid, raising its total supply to 2,000 megawatts. This increase is contingent on the adoption of a uniform national tariff.

Turning to solar energy, Leghari noted a surge in solar installations across Pakistan but cautioned that the current net metering policy disproportionately benefits a small segment of consumers. He revealed that a revised policy will be presented to the federal cabinet within two weeks.

The minister also pointed out that the federal government has removed the Pakistan Television (PTV) fee from electricity bills and has formally requested all four provincial chief ministers to eliminate the electricity duty. “So far, only one chief minister has responded. Once the remaining replies are received, the matter will be escalated to the prime minister,” he said.