The federal government has launched a sweeping crackdown on electricity theft and distribution losses, ordering a nationwide technical audit of all power distribution companies to identify the true scale of theft, pinpoint problem areas, and prevent consumers from paying for system inefficiencies.
The decision emerged from a high-level committee meeting co-chaired by Federal Minister for Economic Affairs Senator Ahad Cheema and Energy Minister Sardar Awais Ahmad Khan Leghari, signaling the government’s determination to tackle one of Pakistan’s most persistent energy sector problems.
Under the new directive, the Ministry of Information Technology will lead a technology-driven audit using independent technical experts. An Expression of Interest will be issued within days, with final terms of reference expected next week. The audit will map the geographical concentration of power theft, examine both technical and commercial losses, and deliver actionable recommendations.
“Under no circumstances will the burden of power theft or inefficiencies within the distribution system be shifted to the people,” Senator Cheema declared, emphasizing that overbilling is completely unacceptable. He warned that any distribution company attempting to hide theft or losses through excessive consumer billing would face consequences.
The crackdown comes as electricity bills remain a major source of public frustration across Pakistan. High distribution losses and rampant theft in certain areas have long inflated costs for honest consumers, while circular debt continues to strain the national economy.
Energy Minister Leghari confirmed that pilot solar projects are already underway in high-theft areas served by PESCO and QESCO, aiming to reduce pressure on the grid while addressing persistent line losses. The government is also deploying digital monitoring tools to detect irregularities and strengthen accountability across the distribution network.
In parallel, the government announced a major structural shift in how electricity is bought and sold in Pakistan. For the first time, the country will hold a competitive wheeling auction allowing large industrial consumers to purchase power directly from producers, bypassing the government entirely.
“The government is practically exiting electricity purchases,” Leghari announced, describing the move as the end of decades of centralized control. Initially covering 400 megawatts with plans to expand to 800MW over five years, the system will eventually allow even ordinary consumers to choose their electricity suppliers.
The reforms are already delivering results. Timely decisions by the Power Division reduced the Fuel Cost Adjustment for August to Rs1.73 per unit from Rs2.08 the previous month, saving consumers an estimated Rs10.6 billion. The savings came from maximizing domestic energy sources, which accounted for 72% of generation in August, and avoiding costly imported fuel during a period of global price spikes.
Leghari credited public cooperation with nighttime load management for helping lower costs, particularly as international fuel markets faced severe pressure due to disruptions in the Strait of Hormuz. Coordinated efforts to secure additional domestic gas supplies prevented both higher tariffs and an extra hour of load shedding.
The committee overseeing the reforms expressed satisfaction with improved recovery performance by distribution companies this year, but stressed that momentum must continue through better governance, stronger monitoring, and targeted action in high-loss areas. Officials made clear that preventing further growth in circular debt remains a top priority as the government pursues evidence-based solutions to longstanding inefficiencies in Pakistan’s power sector.
