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Historic Rs 191 billion loss reduction through power sector reforms

News Desk by News Desk
July 10, 2025
in Business, News
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Historic Rs 191 billion loss reduction through power sector reforms
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Islamabad: Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari announced Thursday that the government’s reform efforts have resulted in a record Rs191 billion reduction in power sector losses within the first year of implementation. The achievement reflects a broader shift towards transparency, merit-based appointments, and aggressive anti-theft measures across the country’s power distribution companies (DISCOs).

Addressing a press conference, Minister Leghari highlighted that the power sector had inflicted Rs591 billion in losses on the national exchequer during the 2023–24 fiscal year, largely due to electricity theft and poor recoveries. However, targeted reforms have brought these losses down to Rs399 billion. The minister emphasized that such funds, if saved earlier, could have been allocated to critical areas such as debt servicing, national development, and public welfare.

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“This is the first time in the country’s history that such a drastic reduction in power sector losses has been achieved in such a short time,” Leghari stated. He credited this success to strict adherence to transparency and the end of politically motivated appointments. “We’ve removed politicized board selections and replaced them with merit-based governance across all DISCOs,” he added.

The reforms, backed by Prime Minister Shehbaz Sharif, also improved the overall recovery performance from 92.4% to 96.6%, resulting in reduced financial pressure on the government. Last year’s recovery losses of Rs315 billion were substantially narrowed, while electricity theft was partially curbed—falling by Rs11 billion from Rs276 billion previously.

A key contributor to this progress was the Lahore Electric Supply Company (LESCO), which alone slashed Rs60 billion in losses and uncovered a major electricity theft racket involving industrial entities. Leghari praised the role of LESCO, along with Rangers, Army units, and civil administration, in facilitating the crackdown.

However, he warned that certain influential figures are now attempting to undermine the reform process by using their networks within government departments to initiate inquiries against officials involved in anti-theft operations. He assured that the Prime Minister stands firmly behind these officers and that the fight against electricity theft will continue with full force.

Responding to a question on solar energy and net metering, Leghari reaffirmed the government’s commitment to renewable energy, stating that Pakistan is undergoing a “solar revolution.” Over 6,500 MW has already been connected to the grid through net metering, with an additional 8,000 MW space earmarked in the upcoming IGCEP plan. While clarifying that rooftop solar installations are not being restricted, he stressed the importance of fair regulation and a balanced tax regime to support both imports and local production.

Looking ahead, the government plans to reduce annual losses in the power sector to below Rs100 billion and continue with broader structural reforms, including the privatization of DISCOs, renegotiation of IPP contracts, and a transition towards a competitive electricity market. The end goal remains clear: more affordable electricity for consumers and long-term economic stability for the country.

The press conference concluded with a video presentation from a recent LESCO raid exposing industrial-scale power theft, underscoring the scale and urgency of the government’s ongoing anti-theft campaign.

Agencies add: Energy minister Awais Leghari has said not only poor people but also larger industries and furnace oil plants are involved in power pilferage.

DISCOS placed burden of loss of Rs 591 billion in 2023-24. Had there been no such losses then it would have been easy to pay off the debt of the country.

He held the entire government and cabinet expressed their grave concerns over this matter. Government decided to correct these DISCOs under determination and made appointments in DISCOs according to its thinking and strategy. Power division eliminated culture of favoritism in DISCOs.


Owais Leghari said we succeeded in curtailing losses of DISCOs under good governance. I thank to leadership of Prime Minister and DISCOs Board. We have succeeded in lessening DISCOs losses by Rs 191 billion till June 30, 2025.


He said it was decided that to lessen loss to the tune of Rs 100 billion gradually. This year we had to suffer losses of Rs 399 billion as compared to Rs 591 billion last year.
He indicated there are two types of losses in DISCOs.


He pointed out DISCOs had not recovered Rs 315 billion against electricity bills last year. We have taken recovery of bills to 96 percent for the first time in history of Pakistan.
Under the head of power pilferage, electricity was stolen of Rs 276 billion last year. Some DISCOS did well and succeeded in containing power theft.

He remarked not only poor man steals electricity but large industries and furnace oil plants are involved in power pilferage.
LESCO did well than others and it succeeded in curtailing losses. LESCO conducted major operation against power theft. How much a big industry steals the electricity, the theft at such level is not committed in a village.

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