The Energy Ministry informed the National Assembly that Pakistan’s circular debt decreased by Rs9 billion during the first half of the current fiscal year, falling from Rs2,393 billion in June 2024 to Rs2,384 billion by December 2024. This reduction is attributed to improved recoveries by power distribution companies (Discos) and the implementation of strategic measures aimed at enhancing efficiency and reducing losses.
Key Initiatives in the 2025–2029 Strategic Roadmap:
•Energy Audits: Conducting computerized audits of distribution transformers to identify areas with high power losses.
•Advanced Metering Infrastructure: Implementing real-time monitoring systems to detect unauthorized electricity consumption.
•Meter Installation: Mandating the installation of electricity meters for all consumers to ensure accurate billing and accountability.
•Recovery Actions: Taking legal action against defaulters under the Land Revenue Act and deploying area bundle contractors in regions with high electricity theft.
•Solarization of Tube Wells: Transitioning agricultural tube wells to solar power to reduce reliance on the national grid.
•Arrears Recovery Scheme: Introducing programs to assist local administrations and Discos in collecting outstanding dues.
Additionally, the National Electric Power Regulatory Authority (Nepra) approved a Rs1.71 per unit subsidy on average tariff for all distribution companies, including K-Electric, for the April to June quarter. This Rs58.6 billion subsidy will be financed through a Rs10 per litre petroleum levy on petrol and diesel imposed by the federal government on March 15.