Prime Minister Shehbaz Sharif has set a deadline of December 31, 2025, for provincial chief secretaries to clear the outstanding electricity dues of power distribution companies (DISCOs), Business Recorder reported.
The Minister for Power was mandated to contact the chief secretaries of the provinces and ensure the clearance of pending bills from provincial departments. A finalised report on the issue is to be submitted to the prime minister within two weeks.
Minister for Power Sardar Awais Ahmad Leghari confirmed that the current stock of outstanding dues against provinces stands at Rs166 billion. He added that, under a decision by the Council of Common Interests (CCI), the federal government had already deducted Rs20 billion at source last year, equivalent to 25% of the reconciled amount.
The issue of unpaid electricity dues by the Sindh government was also discussed, with the CEO of Sukkur Electric Power Company (SEPCO) highlighting that the company was supplying electricity to areas under the jurisdiction of the Irrigation Department, where losses exceeded 90%. These areas had seen transformers reinstalled on the instructions of a standing committee and a local MNA but were later removed with the support of Rangers.
Taking serious note of this situation, the Minister for Power instructed that transformers should not be reinstalled if removed with the support of Rangers. He further stated that the Irrigation and Police Departments in Sindh were not paying their electricity bills despite the installation of Automated Meter Reading (AMR) meters.
Sindh government officials responded by noting that SEPCO had not provided cost estimates for replacing bulk meters with individual meters. An additional secretary from the Sindh Finance Department also informed the meeting that the federal government had directly deducted Rs8 billion at source from the province for electricity arrears, a measure taken in line with the CCI’s decision.
Confirming the deduction, Minister Leghari emphasised the need for provinces to make timely payments to prevent further financial strain. Secretary of Power Dr. Fakhre Alam Irfan added that while provinces pay their original reconciled amounts, the federal government has to borrow from banks to cover the gap, which results in interest payments that contribute to the circular debt.
The Standing Committee on Energy also expressed concern over the non-payment of electricity bills by the irrigation and power departments of Sindh, causing recurring losses to DISCOs in the province.
The committee has directed the CEOs of Sukkur Electric Supply Company (SEPCO) and Hyderabad Electric Supply Company (HESCO), along with the Sindh government’s secretaries of finance, irrigation, and power, to reconcile the outstanding figures and arrange for payment to prevent further losses.