Prime Minister Shehbaz Sharif has stated that ongoing reforms in the power sector are delivering positive results, with significant improvements in efficiency and cost reductions.
Chairing a review meeting on power sector reforms in Islamabad on Friday, he emphasised that the government remains committed to providing low-cost electricity to the public.
The PM highlighted that the Ministry of Power and its affiliated agencies are actively working to address the challenges that have plagued the energy sector for the past seven decades.
- Review of IPP agreements: The government’s review of agreements with independent power producers (IPPs) is saving the national exchequer and reducing electricity costs for consumers.
- Crackdown on power theft: The anti-electricity theft campaign has led to a reduction in losses for power distribution companies, reflecting the Ministry of Power's dedicated efforts.
- Strengthening distribution companies: The appointment of reputable private sector professionals to the boards of power distribution companies has improved operational efficiency. The PM instructed that board appointments in pending cases be completed at the earliest.
- Reduction in transmission losses: A decline in power transmission losses is another clear indicator of the success of ongoing reforms.
- Future reduction in electricity tariffs: PM Shehbaz assured that the reforms would lead to further reductions in tariffs for both domestic consumers and industries.
Achievements and Future Roadmap
The meeting was briefed on the targets of the power sector reforms for the next three years. During the meeting, officials presented an update on power sector performance, reporting that collection rates for power distribution companies had improved to 93.26% by December 2024 due to reforms and the anti-theft drive.
A roadmap was also shared outlining:
- A phased reduction in circular debt.
- The establishment of competitive markets for power transmission.
- Gradual reductions in electricity tariffs.
Additionally, progress on major infrastructure projects, including the 500 kV Matiari-Moro-Rahim Yar Khan and Ghazi Barotha-Faisalabad transmission lines, was reviewed. The dissolution of the National Transmission and Dispatch Company (NTDC) and the creation of a new Energy Infrastructure, Development, and Management Company (EIDMC) were also discussed.
Prime Minister Sharif directed officials to ensure timely completion of all power sector reforms and projects. He reiterated that the crackdown on power theft would be further intensified, aiming for a 100% reduction in losses for all distribution companies.
The meeting was attended by federal ministers Khawaja Asif, Ahad Khan Cheema, Attaullah Tarar, Dr. Musadik Malik, Sardar Awais Leghari, Special Assistant Muhammad Ali, and other senior officials.
