ISLAMABAD – May 24, 2025: The federal government has initiated efforts to recover a massive Rs161 billion in outstanding electricity dues from provincial governments, as confirmed by Power Minister Sardar Awais Leghari during a meeting of the Senate Standing Committee on Power.
Presided over by *Senator Mohsin Aziz, the committee was informed that the *Council of Common Interests (CCI) had earlier approved a mechanism allowing for 25% at-source deduction of pending bills, with the remainder to be recovered following bill reconciliation. The Power Division has formally approached the Ministry of Finance to initiate recoveries.
Breakdown of outstanding dues (as of March 31, 2025):
- Sindh: Rs67 billion
- Punjab: Rs42 billion
- Balochistan: Rs42 billion
- Khyber Pakhtunkhwa: Rs10 billion
Officials revealed that these arrears accumulated over the last three years due to delays and reluctance from provinces in reconciling the billing data. The committee chair expressed serious concern and called for immediate action to recover the dues.
The mechanism for at-source deduction was agreed upon in 2014 through consensus in the CCI, with Standard Operating Procedures (SOPs) for deductions implemented from July 1, 2014. However, enforcement remains inconsistent.
During the meeting, Minister Leghari also announced plans to *privatise three power distribution companies (Discos)—IESCO, **FESCO, and **GEPCO—in the first phase. In a second phase, **LESCO, **MEPCO, and *HESCO will also be considered. Additionally, the Guddu and Nandipur power plants are marked for privatisation.
The committee urged the ministry to safeguard employee interests through *worker-friendly policies, including *voluntary early retirement options.
Investor engagement, restructuring, and roadshows for privatisation are already underway and expected to conclude by January 2026.
Addressing concerns over the high electricity cost during peak hours, the minister explained that reliance on costly *Residual Fuel Oil (RFO)-based plants at night drives up rates. The chairman criticized this approach and stressed a shift to more *efficient generation sources to ease the burden on consumers.
The committee was also briefed on the successful installation of 800,000 Advanced Metering Infrastructure (AMI) meters in *Islamabad, Rawalpindi, and Taxila, which has contributed to a *2% reduction in line losses.
