PM reviews three-year power sector overhaul as officials brief on progress, aiming for sustainable reforms and efficiency improvements
By Asghar Ali Mubarak
ISLAMABAD: Prime Minister Shehbaz Sharif has reiterated his government’s commitment to lowering electricity tariffs for both domestic consumers and industries, framing power sector reforms as a crucial step towards economic stability.
Chairing a high-level meeting in Islamabad, the Prime Minister urged officials to expedite the implementation of planned reforms, setting a firm deadline for their completion. . They reported that the recovery rate of distribution companies had climbed to 93.26 percent by December 2024, attributing the improvement to the ongoing anti-theft drive and other structural measures.
Shehbaz welcomed the results, portraying them as a long-overdue correction of inefficiencies that had plagued the sector for decades. He credited the collaboration between the energy ministry and relevant institutions for driving the turnaround, while underlining the government’s resolve to ensure the supply of low-cost, environmentally sustainable electricity to consumers.
The renegotiation of contracts with Independent Power Producers (IPPs), he noted, had led to significant financial savings for the national exchequer and eased some of the burden on consumers. The prime minister praised the anti-power theft campaign, calling the reduction in losses suffered by distribution companies a major success. He instructed authorities to intensify efforts against electricity theft, setting an ambitious target of eliminating such losses entirely.
Emphasising governance reforms, he noted that the appointment of reputable private sector professionals to the boards of distribution companies had started to yield positive outcomes. He directed officials to accelerate similar appointments in companies where board structures were yet to be finalised. Discussions also covered broader structural challenges, with officials presenting strategies to address transmission losses and tackle circular debt.
Progress on key transmission projects—including the 500 kV Matiari-Moro-Rahim Yar Khan and Ghazi Brotha-Faisalabad lines—was reviewed, as was the dissolution of the National Transmission and Dispatch Company (NTDC) in favour of the newly established Energy Infrastructure Development and Management Company (EIDMC).
Shehbaz concluded with a call for urgent action, instructing authorities to ensure the timely completion of all reforms. The aim, he said, was not just to stabilise the power sector but to make it more efficient and sustainable in the long run.
