Latest news with #Rs276
Express Tribune
11-07-2025
- Business
- Express Tribune
Leaking DISCOs
Listen to article As Pakistan begins to inch toward a long-overdue path of economic recovery, the government has been eager to highlight improvements across sectors — none more so than the power sector, where Federal Minister for Energy Awais Ahmad Khan Leghari claims a "success" in reducing electricity theft and losses by Rs192 billion. But in truth, this is a damning reminder of how deep-rooted dysfunction continues to plague DISCOs, and how these entities remain one of the biggest drags on the country's economic revival. The Rs591 billion loss inflicted by government-run DISCOs in FY2023-24 is a symptom of institutional rot. While the minister points to a reduction to Rs399 billion as a sign of progress, let us not forget that this remaining burden is still being shouldered by taxpayers and honest bill-payers. The breakdown of the losses is as follows: Rs315 billion lost due to unpaid bills and Rs276 billion attributed to electricity theft. Even with improved recovery rates and marginal savings, the fact remains that nearly Rs400 billion continues to bleed from the system every year. This is a massive leakage in an economy. Power theft, non-recovery and technical inefficiencies all stem from the same root cause: a lack of governance and accountability. For years, DISCOs have been run on the basis of political patronage and outdated systems that allow theft and corruption to flourish unchecked. While reforms and merit-based board appointments are welcome, they are not a silver bullet. Without independent audits and zero-tolerance enforcement on corruption, these reforms will remain cosmetic. The bar should not be so low that reducing theft is considered a success. DISCOs must be transformed from politically compromised entities into professional, performance-driven utilities. As Pakistan enters a new fiscal year with hopes of economic renewal, one message must be clear that recovery will not be possible without root-and-branch reform of the power sector.
Express Tribune
11-07-2025
- Business
- Express Tribune
DISCOs cause Rs591b losses, says Leghari
Listen to article Federal Minister for Energy Awais Ahmad Khan Leghari said on Thursday that power distribution companies (DISCOs) were responsible for electricity theft worth Rs591 billion. During fiscal year 2023-24, 10 government-run DISCOs placed a burden of Rs591 billion on the country and taxpayers. "We have successfully reduced power theft from Rs591 billion to Rs399 billion," Leghari said while addressing a press conference. He said that the Power Division had made significant progress in introducing reforms that resulted in improvement in the power sector, under the directives of Prime Minister Shehbaz Sharif. "This is the first time in history that the government has reduced such losses through focused reforms," he added. Leghari stated that the government had already ensured transparency in appointing board members. He emphasised the need to inform the public about the scale and reasons of the losses DISCOs were facing. "Had these losses not been suffered, the country could have paid off its debt, initiated development schemes in various areas and used taxpayers' money for national progress," the minister remarked, adding that the prime minister, the entire cabinet and the government's coalition partners were seriously concerned about the losses. Therefore, the government launched a campaign to cut losses and bring improvement in the power sector one year ago. On the prime minister's instructions, the government took the initiative to implement positive governance reforms and ensure that appointments on boards and in companies were made on merit, rather than continuing the long-standing practice of hiring based on personal connections and political recommendations. Owing to those reforms, he said, the government reduced losses from Rs591 billion to Rs399 billion – an objective achieved even before the targeted deadline. Despite facing challenges, the process of reforms will continue. Leghari pointed out that financial figures for the fiscal year ended June 30 were encouraging. He said that two major losses were discovered – the first being when electricity bills of companies could not be collected and the second were technical and non-technical (T&D) losses; when electricity was supplied by DISCOs but was not billed, which was essentially an electricity theft. Out of the total losses of Rs591 billion, Rs315 billion was due to non-recovery of bills. The overall recovery rate of electricity bills was 92.4% last year, which jumped up to 96.6% this year, which was for the first time in history. However, power companies still failed to recover Rs132 billion in bills. He shared that Rs276 billion worth of electricity was stolen last year and DISCOs worked hard to reduce the losses. Some companies succeeded in reducing line losses, resulting in savings of Rs11 billion by curtailing electricity theft. The minister also shared detailed performance of all distribution companies. He said that Lahore Electricity Supply Company (Lesco) performed particularly well and uncovered a massive electricity theft scandal. However, some influential people are now trying to launch inquiries 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, noting that a single furnace-based industrial unit stole more electricity in a month than an entire village did 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 would be on controlling large-scale losses and industrial theft, so that the progress made during the past year could continue.
Express Tribune
18-06-2025
- Business
- Express Tribune
Surplus budgets
Listen to article The restive provinces of Khyber-Pakhtunkhwa and Balochistan have endeavoured to post budget surplus to the tune of Rs157 billion and Rs36.5 billion, respectively, as they went on to project massive developmental outlays for FY26. Khyber-Pakhtunkhwa led from the front as it came up with categorical statistics in a budget of Rs2119 billion, allocating Rs363 billion for education and Rs276 billion for health; raising the minimum wage to Rs40,000 per month (a step that the federal budget fell short of); and increasing salaries by 10% and pensions by 7%. Likewise, the law and order-infected province has kept Rs158 billion for local security edifice (while expecting Rs1,147 billion in federal transfers) and allocating a generous Rs547 billion under Annual Development Programme, including Rs40 billion for the merged districts. The PTI-governed province has, however, complained that Islamabad has deducted Rs42 billion under the NFC Award. Balochistan with a record outlay of Rs1.03 trillion has vowed to go on a development spree with an allocation of Rs349.5 billion. The provincial finance guru surprised all by claiming that the province has fully utilised the outgoing year's developmental budget of Rs219 billion — something that is contestable given the abject backwardness and revulsion all around. The province's total receipts are projected at Rs801 billion, both from federal and straight transfers, as it goes on to generate Rs101 billion indigenously (including Rs48 billion from levy on services), apart from Rs104.5 billion from federal and foreign assistance for development. Surprisingly though, there is no clear mention of allocations for health, education and law and order, whereas the troublesome province has come up with special funds of: Rs18 billion for eight more safe cities; Rs25 billion for Mashkel dam construction; Rs20 billion for public welfare; and Rs3 billion for sanitation schemes and 1,000 water filtration plants. Last but not least, a first-of-its-kind climate grant of Rs500 million will be a litmus test as drought and floods repeatedly take a toll on the desolate province.
