Power sector losses go down in Pakistan amid theft crackdown

Pakistan’s power sector has achieved a significant breakthrough by cutting financial losses by PKR 191.2 billion in fiscal year 2024-25, driven by sweeping reforms and an aggressive campaign against electricity theft.

The reduction, down from PKR 590.9 billion in FY2023-24 to PKR 399.7 billion, was disclosed by Federal Minister for Power Sardar Awais Ahmad Khan Leghari during a press conference in Islamabad.

The minister said the sharp decline in losses stemmed from decisive action against entrenched corruption and systemic inefficiencies. Electricity theft, ranging from small-scale pilfering in underserved communities to large-scale diversions by industrial units, had long plagued the sector.

“Some industrial units steal more electricity in a single month than entire villages do in five years,” Leghari remarked.

He cited the Lahore Electric Supply Company (LESCO) as a key driver in the sector’s turnaround, having unearthed a major power theft scandal and initiated substantial operational improvements.

Leghari attributed the progress to governance reforms implemented under the directives of Prime Minister Shehbaz Sharif. These included merit-based appointments of board members to state-run distribution companies (DISCOs), enhancing transparency and institutional oversight.

Key achievements highlighted by the minister included better board-level governance and an ongoing crackdown on theft, even in the face of political pressure.

Economists say the improvement could bolster Pakistan’s fiscal outlook by reducing debt-servicing burdens and creating space for public investments in infrastructure and welfare. Leghari emphasized that public servants acting with integrity would be safeguarded and rewarded.

“Our commitment is unwavering. We will protect those who serve the nation faithfully,” he said.