Pakistan PM orders renewable energy push and crackdown on electricity theft

Pakistan Prime Minister Shehbaz Sharif on Tuesday ordered officials to accelerate renewable energy reforms and intensify action against electricity theft. Chairing a power sector meeting, Sharif directed authorities to prepare a strategy to meet future electricity demand through hydropower, solar energy and biogas, while reducing dependence on imported fuels to lower production costs.

What did PM Shehbaz order on renewable energy?

Sharif directed authorities to fast-track renewable energy development, including hydropower, solar and biogas projects, to reduce electricity production costs and support economic growth. He also called for faster progress in cutting reliance on imported fuel for power generation. Officials were told to prepare a comprehensive strategy to meet future demand through these cleaner, local sources.

What action did Sharif order against electricity theft?

The prime minister said no leniency would be shown toward those involved in electricity theft. He instructed authorities to take departmental action against distribution companies that recently violated the Economic Merit Order, a system designed to ensure the cheapest available electricity is dispatched first. Sharif also ordered the accelerated installation of smart meters on transformers in areas considered vulnerable to theft.

Officials reported that losses at electricity distribution companies had declined significantly compared with last year following enforcement measures. Transmission and distribution losses fell from 18.3% in June 2024 to 15.3% in March 2026. Bill recovery rates improved from 90% to 96.46% over the same period. Smart meters have so far been installed on 2,500 loss-making feeders.

What are Pakistan's plans for a competitive electricity market?

Sharif directed officials to accelerate reforms aimed at creating a competitive electricity market. In the first phase, plans are being fast-tracked to supply 400 megawatts of electricity to the private sector under the wheeling system, which allows direct power delivery between producers and consumers using the national grid.

Which distribution companies are being opened to private investment?

Officials said work was underway to introduce private sector participation in three electricity distribution companies, with the bidding process expected to conclude by November. The meeting was attended by Law Minister Azam Nazeer Tarar, Finance Minister Muhammad Aurangzeb, Power Minister Sardar Awais Leghari, Petroleum Minister Ali Pervaiz Malik, Economic Affairs Minister Ahad Khan Cheema, Privatization Adviser Muhammad Ali, Minister of State for Finance Bilal Azhar Kayani and senior government officials.