The government's announcement on Wednesday unveiled plans for a comprehensive crackdown on electricity theft, a problem that federal ministers claimed had led to substantial financial losses, reaching hundreds of billions of rupees, and contributed to increased bills for the average citizen. Power Minister Muhammad Ali and Information Minister Murtaza Solangi jointly presented these measures during a press conference held in Islamabad.
This initiative comes in the context of a nationwide, robust crackdown on electricity theft, aimed at curbing the mounting technical and commercial losses faced by power distribution companies across the country. The interim government, responding to public outcry over inflated electricity bills in August, has been exploring its limited options to appease the protesting citizens who have taken to the streets.
During the news conference, the Power Minister emphasized the prevailing situation, stating, "In our country, some domestic consumers steal electricity while others do not pay their bills." He highlighted the existence of ten distribution companies (Discos) in Pakistan, with K-Electric managing its own distribution network in Karachi.
Minister Ali provided alarming statistics, revealing that the annual losses due to electricity theft and unpaid bills amounted to Rs589 billion. He underscored that these losses ultimately lead to higher bills for law-abiding citizens, stressing, "Until this problem is eradicated, electricity prices will not decrease." He also announced that the Prime Minister had issued directives to crack down on electricity theft and ensure bill payments.
Further insights were shared by the minister regarding the varying levels of losses in different Discos. In cities like Lahore, Faisalabad, Gujranwala, Multan, and Islamabad, where recovery rates were relatively better, the total loss amounted to 79 billion units, equivalent to Rs100 billion out of a billing total of Rs3,044 billion, approximately 3 percent.
In contrast, Discos in Peshawar, Hyderabad, Sukkur, Quetta, and Azad Jammu and Kashmir reported losses as high as 60 percent. Minister Ali emphasized their commitment to addressing this issue using data analysis, stating, "We have all the data on areas where electricity theft is more and where it is less, we will take steps on the basis of this data." Their approach would involve focused efforts in areas with higher electricity theft rates to bring an end to this problem.
The power minister said the government has communicated with chief secretaries and police chiefs in provinces and “we have their full support in implementing this [plan to curb electricity theft]”.
The measures also include reining in officials who aid the pilferage of electricity.
“We have prepared a list of officers who are involved in the theft,” the minister said. “They are being reshuffled and they will be removed from field jobs. We have sent the list to the Election Commission of Pakistan for their approval for the transfers.”