The interim federal government has announced a nationwide crackdown on electricity theft to tackle the growing circular debt in the power sector. Caretaker Minister for Information and Broadcasting Murtaza Solangi, along with Power Minister Energy Muhammad Ali, unveiled the measures during a press conference.
Energy Minister Ali highlighted that Pakistan’s 10 distribution companies collectively face an annual loss of Rs589 billion, with electricity theft and non-payment of bills being significant contributors to this loss. To combat the issue, the interim government has devised a comprehensive three-pronged strategy:
- Technology Interventions: In areas where electricity theft ranges from 15 to 30 percent, technology solutions will be implemented to curb theft.
- Private Sector Involvement: In areas with theft rates between 30 to 60 percent, the private sector will be engaged in management to enhance efficiency.
- Enforcement: In regions where power theft exceeds 60 percent, strict enforcement measures will be applied.
Additionally, the government is conducting a review of the performance of power distribution company Boards of Directors and plans to make changes in their management.
The announcement comes amidst widespread protests across the country against inflated electricity bills, with citizens demanding an end to the provision of free electricity to influential figures and relief for ordinary consumers. Earlier, it was reported that Pakistan failed to secure IMF approval for relief on electricity bills, as it could negatively impact recoveries, potentially up to Rs6.5 billion. The IMF sought a plan from Pakistan to bridge the financial gap caused by the proposed relief.