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ISLAMABAD: Federal Minister for Energy Awais Khan Leghari has said that, under the directives of the Prime Minister, significant progress has been made in improving governance and introducing reforms. Within one year, losses amounting to Rs 591 billion have been successfully reduced to Rs 399 billion. During the fiscal year 2023–24, the ten government-run power distribution companies had placed a burden of Rs 591 billion on the country and taxpayers. However, this is the first time in history that such losses have been brought down through focused reforms.
He said that the process of appointing board members has also been made transparent, and that Lahore Electric Supply Company (LESCO) has exposed a major electricity theft scandal. The campaign against electricity theft and the reform process will continue, with the aim of reducing the burden of theft and other losses on the government and taxpayers.
While addressing a press conference on Thursday, he emphasized the need to inform the public about the scale and reasons behind the losses faced by the distribution companies. He said that in 2023–24, the ten government-controlled power companies had caused a total loss of Rs 591 billion to the national exchequer and taxpayers. Had these losses not occurred, the country could have paid off debt, initiated development schemes in various areas, and used taxpayers’ money for national progress.
He added that the Prime Minister, the entire cabinet, and the government’s coalition partners were seriously concerned about these losses. Therefore, one year ago, efforts were launched to improve the performance of these distribution companies. On the Prime Minister’s instructions, the government took the initiative to implement good governance reforms.
He explained that, for the first time in history, appointments in boards and companies were made on merit, ending the long-standing practice of hiring based on personal connections and political recommendations.
Due to these reforms, he said, the losses have now been brought down from Rs 591 billion to Rs 399 billion—an achievement accomplished even before the target deadline. Despite facing challenges, the process of reforms will continue.
Leghari pointed out that the financial figures for the fiscal year ending on June 30 are encouraging. He thanked the Prime Minister, board members of distribution companies, officials of allied institutions, Rangers, and other security agencies for their support in achieving these results.
He explained the two major types of losses are i.e. Recovery losses – when electricity bills are not collected, Technical and non-technical (T&D) losses – when electricity is supplied but not billed, which is essentially electricity theft.
Out of the total Rs 591 billion in losses, Rs 315 billion were due to non-recovery of bills. The government had to bear this loss. The overall recovery rate last year was 92.4%, but for the first time in history, it has now improved to 96.6%. However, Rs 132 billion in recoveries could still not be made this year.
He further shared that Rs 276 billion worth of electricity was stolen last year. Distribution companies worked hard to reduce these losses. Some companies succeeded in reducing line losses, resulting in a savings of Rs 11 billion from stolen electricity.
The minister also shared detailed performance figures of all distribution companies. He said LESCO performed particularly well and uncovered a massive electricity theft scandal.
However, he noted that some influential people are now trying to launch inquiries—through different departments—against those who took action against electricity theft. The Prime Minister, he said, is committed to supporting the officers and staff who are leading the battle for reforms and continuing their efforts to stop theft.
He highlighted the scale of the problem by saying that a single furnace-based industry steals more electricity in a month than an entire village does in five years. In the past, action was mostly taken against small consumers, while large-scale theft went unnoticed.
This year, he said, the focus will be on controlling large-scale losses and industrial theft, so that the progress made during the past year can continue. He also showed a video during the press conference, which captured an operation against electricity theft in the industrial sector.
