ISLAMABAD: Prime Minister Shehbaz Sharif hailed a significant turnaround in Pakistan’s power sector after being briefed that power distribution companies (DISCOs) had slashed their losses by Rs193 billion — leading to an overall financial improvement of Rs242 billion. Chairing a high-level Cabinet Committee on Energy meeting, the premier called the progress “extremely encouraging” and a crucial step toward rectifying decades-long inefficiencies.
He emphasized that this improvement would accelerate the long-delayed privatization of DISCOs and directed that appreciation letters be issued to CEOs of companies demonstrating exceptional performance. Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO) were specifically praised for their effective loss reduction measures.
The committee also approved amendments to the National Electricity Plan – Strategic Directive 87, including the setting of wheeling charges at Rs12.55 per kilowatt and the integration of competitive bidding prices. Officials reported the formal operationalization of the Independent System and Market Operator (ISMO) and the establishment of market operations departments within NTDC and DISCOs — marking a shift towards a more competitive, market-driven power sector.
While acknowledging progress, the meeting noted that circular debt has surged to Rs780 billion. However, the Prime Minister’s Office remained silent on how this pressing issue would be addressed, leaving a major sectoral challenge unresolved in its official statement.
Story by Zulfiqar Ahmad
