Caretaker government unveils three-pronged strategy to combat electricity theft and tackle power sector's rs589 billion loss. In a significant move to address Pakistan's power sector challenges, the caretaker federal government has declared a nationwide crackdown on electricity theft, aimed at curbing the burgeoning circular debt crisis. Caretaker Minister for Information and Broadcasting Murtaza Solangi and Power Minister Energy Muhammad Ali jointly announced these measures during a press conference.
The power minister highlighted that the country's 10 distribution companies collectively suffer an annual loss of Rs589 billion, primarily due to electricity theft and nonpayment of bills. To tackle this issue, the government unveiled a comprehensive three-pronged strategy. First, technology interventions will target areas with 15 to 30 percent theft.
Second, the private sector will be involved in areas with 30 to 60 percent theft, and strict enforcement will be applied in regions with over 60 percent theft.
Additionally, the government is assessing the performance of power distribution company boards and considering management changes.
The decision comes in response to widespread protests against inflated power bills, demanding relief for the public. Earlier, Pakistan's plea for IMF relief on electricity bills was rejected, as it could have affected recoveries by more than Rs15 billion, creating a financial gap in the process.
