PM Shehbaz says govt committed to cut electricity costs, tackle power theft

Prime Minister Shehbaz Sharif said on Tuesday that the government is fully committed to providing low-cost electricity to domestic consumers and other sectors, while also implementing reforms to achieve economic stability.

"Our primary focus is on reducing power prices to provide relief to domestic consumers, agriculture, industry, exports, and business sectors. This is essential to navigate the current economic challenges. The competitiveness of our exports is directly linked to affordable electricity," the prime minister said during an address to the newly appointed chairmen and board members of power distribution companies (DISCOS).

The meeting was attended by board members and chairmen from Lahore Electric Supply Company, Islamabad Electric Supply Company, Faisalabad Electric Supply Company, Multan Electric Power Company, and Hazara Electric Supply Company.

Highlighting the importance of low-cost electricity and an efficient power transmission system as key factors for a stable economy, he noted that the Special Investment Facilitation Council (SIFC) is focused on achieving these goals.

PM Shehbaz assured the participants that the government would publicly recognise the DISCO members and heads who demonstrate maximum effort in bringing improvements. However, those who fail to do so will neither be spared nor remain part of the team.

He mentioned that through a rigorous process, the government has appointed highly competent and experienced individuals to DISCOS purely on merit, eliminating politically motivated appointments.

The prime minister acknowledged the significant challenges ahead, emphasising the need for relentless hard work to eliminate mismanagement and corruption within DISCOS. 

He pointed out that power theft has ballooned to approximately Rs500 billion annually, primarily due to collusion with DISCOS staff, which has severely damaged the institutions.

"This is your greatest challenge. The government has deliberated on how to improve the system. You must give your best," he stressed.

The prime minister further noted that the circular debt had reached Rs2300 billion — nearly one-third of the country’s total receipts of Rs9 trillion last year — questioning how a country can be managed with such a heavy burden.

Addressing issues such as line losses and weak transmission systems, he instructed the immediate implementation of smart metering in certain DISCOS.

The prime minister also informed the meeting that the government is discussing with China to operate power plants using a mix of coal, which could save $1 billion annually.

Recalling the installation of liquefied natural gas (LNG) plants during Nawaz Sharif’s tenure nearly a decade ago, which achieved 63% efficiency at nearly half the National Electric Power Regulatory Authority (NEPRA) tariff, he underscored the government's commitment to bringing about improvements.

He emphasised that digitisation of the DISCOs should be the top priority and that after reforms, these companies would be outsourced and privatised.

During the meeting, it was noted that under the SOE Act, the DISCOS enjoy autonomy in policymaking.

The meeting was also attended by federal ministers Ahad Khan Cheema, Abdul Aleem Khan, Muhammad Aurangzeb, and Awais Ahmed Leghari, as well as Special Assistant to the Prime Minister Muhammad Ali, Coordinator to the Prime Minister Rana Ehsan Afzal, and other senior officials.