The Power Ministry has warned of a looming crisis as Federal Minister for Water and Power Raja Pervaiz Ashraf says the power sector is suffering from a loss of over Rs250 billion annually.
Talking to the media after attending a seminar on power reforms on Monday, Ashraf said that reforming the power sector would not be an easy task, but it was time to put it on track.
He also said that task forces have been established to stop power theft.
Meanwhile, the Ministry confirmed that electricity shortfall in the country has risen to 4500 megawatts while total electricity generation is 11,530 megawatts.
The government on October 2 dissolved the bleeding Pakistan Electric Power Company (Pepco) to follow a crucial IMF diktat and at the same time also hiked electricity prices by another 2 per cent.
Ashraf had said Pepco had been facing huge losses and had been facing a circular debt of Rs400 billion. Distribution companies will now function as independent entities and will be responsible for meeting their own expenses, he said.
Pepco had been putting undue strain on the government’s already limited public resources due to inefficient functioning. Donors had been pressurising the government to de-regulate Pepco and its distribution companies and avoid subsidising electricity.
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