PM orders accelerated power sector reforms, pushes renewable energy and anti-theft measures

Prime Minister Muhammad Shahbaz Sharif has directed authorities to accelerate reforms in the power sector and formulate a comprehensive long-term strategy based on renewable energy sources to meet future electricity demands.

Chairing a high-level review meeting on power sector reforms, the prime minister said that increasing electricity generation from hydropower, solar energy, biogas, and other renewable sources would help reduce production costs and positively impact economic growth.

He stressed the need to reduce dependence on imported fuel and instructed officials to expedite all necessary steps in this regard.

The prime minister made it clear that no concessions would be given to individuals involved in electricity theft. He also directed strict departmental action against power distribution companies found violating the “Economic Merit Order” in recent days.

Sharif further ordered acceleration in the installation of smart meters on transformers in areas with high electricity theft, calling it a key step toward reducing losses.

He also emphasized the importance of developing a competitive electricity market in the country and instructed authorities to speed up reforms in this direction.

The prime minister directed that work on supplying 400 megawatts of electricity to the private sector in the first phase under the wheeling system be fast-tracked.

During the briefing, officials informed the meeting that electricity theft, non-payment, and other losses in distribution companies have significantly declined compared to the previous year due to effective measures. Transmission losses reportedly decreased from 18.3 percent in June 2024 to 15.3 percent in March 2026.

The briefing further stated that electricity bill recovery has improved, rising from 90 percent to 96.46 percent during the same period. Officials also said that efforts are underway to bring three power distribution companies under private sector management, with the bidding phase expected to be completed in November this year.

It was also noted that smart meters have already been installed on 2,500 high-loss feeders.

The meeting was attended by Federal Law Minister Azam Nazir Tarar, Federal Minister for Economic Affairs Ahad Khan Cheema, Federal Finance Minister Muhammad Aurangzeb, Federal Minister for Petroleum Ali Pervez Malik, Federal Minister for Power Division Sardar Owais Leghari, Advisor on Privatization Muhammad Ali, Minister of State for Finance Bilal Azhar Kayani, and senior officials from relevant institutions.