ISLAMABAD: Prime Minister (PM) Muhammad Shehbaz Sharif on Tuesday hailed the reduction in power distribution companies’ (DISCOs) losses as an exceptionally positive milestone, unseen in decades.
The prime minister led an important session of the Cabinet Committee on Energy at the Prime Minister’s House, according to a Prime Minister’s Office news release.
Prime Minister Shehbaz Sharif remarked that this financial progress would significantly support the privatization of these power entities.
“The reduction in losses marks a turning point for the energy sector, making the road to privatization smoother and more realistic,” he remarked.
He commended Federal Minister for Power Division Sardar Owais Ahmad Leghari, Federal Secretary Dr Muhammad Fakhare Alam, and their team for their commendable work in advancing reforms in the power sector. He directed that letters of appreciation be sent to the Chief Executive Officers of the high-performing DISCOs responsible for cutting losses effectively.
According to a briefing by the Power Division, total losses in power distribution companies have decreased by Rs193 billion, with an overall improvement of Rs242 billion reported. Among the top performers in reducing financial losses were Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO). The briefing also highlighted that the circular debt flow stood at Rs780 billion.
In a major policy move, the Cabinet Committee approved amendments to the National Electricity Plan-Strategic Directive 87, as recommended by the Power Division. Under the new directives, wheeling charges have been set at Rs12.55 per kilowatt, and bidding price components will be included.
The meeting was also informed that the operationalization of the Independent System and Market Operator (ISMO) has been completed. In addition, dedicated Market Operations departments have now been established within the National Transmission and Dispatch Company (NTDC) and various DISCOs, enabling a more market-driven approach to electricity management in Pakistan.