Prime Minister Shehbaz Sharif on Thursday directed relevant authorities to undertake an urgent restructuring of the National Tariff Commission’s (NTC) legal, administrative, and other institutional powers and responsibilities to enhance its effectiveness. Chairing a review meeting on the NTC’s performance, the Prime Minister instructed a third-party review of its recent performance and a comprehensive remodeling of the organization along modern lines to effectively meet the demands of the new tariff regime.
The Prime Minister emphasized that the NTC must be keenly aware of all on-ground realities pertaining to domestic business, imports, exports, and markets. He added that the NTC’s automated and efficient research capabilities could play a pivotal role in resolving challenges faced by local businesses. Prime Minister Shehbaz affirmed the government’s commitment to addressing the NTC’s training and resource deficiencies and aligning its operations with contemporary requirements. He also directed the immediate activation of the NTC’s Appellate Tribunal and requested a briefing on the implementation of these directives by next month. The meeting was attended by federal ministers Dr. Musadik Malik, Muhammad Aurangzeb, Ahad Khan Cheema, and Ali Pervez Malik, along with other senior government officials.
Significant Reduction in Power Distribution Losses
Federal Minister for Energy Owais Leghari announced in a press conference that effective governance has enabled the government to achieve a substantial reduction in losses within the power distribution system. He stated that losses, which amounted to Rs591 billion last year, have been brought down to Rs399 billion. Leghari highlighted, “We had set a target to reduce losses by Rs100 billion.”
He further detailed that last year, all distribution companies (DISCOs) failed to recover Rs315 billion, while electricity theft accounted for Rs276 billion. According to the minister, in the fiscal year 2023–24, DISCOs incurred losses totaling Rs591 billion. “We have ensured merit within the DISCOs,” Leghari asserted, adding that new boards were formed and reforms initiated based on the Prime Minister’s instructions.
“In 2024–25, losses in distribution companies were reduced by Rs191 billion, bringing them down to Rs399 billion,” he noted. The minister also revealed that electricity theft is prevalent even in the industrial sector, with Rs60 billion worth of theft prevented in Gujranwala alone. “This year, our complete focus, besides recovery, is to curb electricity theft,” he emphasized, stressing that the losses incurred by distribution companies must be transparently presented to the public. He remarked, “Had these losses not occurred, it would have been easier to reduce the country’s debt.”
Leghari stated that the entire government and cabinet have expressed serious reservations regarding this issue. “The government has decided to fix the DISCOs with firm resolve,” he said. He further explained that the boards of these companies were appointed based on independent thinking and strategic vision, and the Power Division has successfully ended the culture of political recommendations within the DISCOs. He claimed, “For the first time in Pakistan’s history, bill recovery has reached 96%.” Referring specifically to theft, he mentioned that Rs276 billion worth of electricity was stolen last year, and efforts to tackle theft have led to a reduction in losses amounting to Rs10–11 billion.
