ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday directed strict action against power distribution companies (DISCOs) for violating the Economic Merit Order (EMO), while reaffirming the government’s commitment to reduce reliance on imported fuels and eliminate electricity theft.
Chairing a high-level meeting on power sector reforms, the premier emphasized the urgent need to transition towards renewable energy sources, including hydropower, solar, and biogas, to lower generation costs and support sustainable economic growth.
“The development of renewable energy is vital for long-term economic stability and reducing dependence on expensive imported fuels,” he said.
The prime minister also ordered immediate implementation of smart metering systems at transformers in high-loss and theft-prone areas, underscoring a zero-tolerance policy against power theft.
He further instructed authorities to accelerate efforts toward establishing a competitive electricity market and fast-track the delivery of 400 megawatts of power by the private sector under the wheeling framework in its initial phase.
During the briefing, officials informed the meeting that reforms over the past two years have yielded tangible improvements. Transmission and distribution losses declined from 18.3% in June 2024 to 15.3% in March 2026, while bill recovery rates increased from 90% to 96.46%.
Progress on privatization was also highlighted, with private sector participation in three DISCOs underway and the bidding process expected to conclude by November 2026. Additionally, around 2,500 smart meters have already been installed on previously loss-making feeders.
The meeting was attended by key cabinet members, including Azam Nazir Tarar, Ahad Cheema, Muhammad Aurangzeb, Ali Pervaiz Malik, Awais Leghari, and Bilal Azhar Kiani, along with other senior officials.
The directives reflect the government’s broader agenda to modernize the energy sector, enhance operational efficiency, and promote clean energy as a sustainable alternative for Pakistan’s future.
Story By Zulfiqar Ahmad
