ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday called for cutting the country’s reliance on imported fuel and vowed zero tolerance for electricity theft, signalling a push to reform a sector long beset by inefficiency and corruption.
Chairing a meeting on reform measures in the power sector, the prime minister emphasised the need for a comprehensive strategy to meet future energy requirements through renewable sources.
He emphasised that expanding electricity generation from hydropower, solar energy, and biogas would lower production costs and boost economic growth.
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“The development of renewable energy sources is essential for sustainable economic progress and reducing dependency on costly imported fuel,” he added.
The premier also directed authorities to ensure departmental action against electricity distribution companies that recently breached the Economic Merit Order.
He directed that plans for installing smart meters on transformers in areas prone to power theft be implemented without delay.
Sharif stressed that measures to foster a competitive electricity market in the country should be accelerated.
He called for the private sector’s delivery of 400 megawatts of electricity under the wheeling system in the first phase to be fast-tracked.
In a briefing, the officials said that electricity theft, non-payment, and other transmission losses have been significantly reduced over the past two years due to effective measures.
They said that losses in the power transmission system declined from 18.3 percent in June 2024 to 15.3 percent in March 2026, while bill collection efficiency rose from 90 percent to 96.46 percent during the same period.
They said that private sector participation in three electricity distribution companies is underway, with the bidding phase expected to conclude by November 2026.
Smart meters have already been installed on 2,500 previously loss-making feeders, they added.
The meeting was attended by Law and Justice Minister Azam Nazir Tarar, Economic Affairs Minister Ahad Cheema, Finance Minister Muhammad Aurangzeb, Petroleum Minister Ali Pervaiz Malik, Power Division Minister Awais Leghari, adviser to the prime minister on privatization Muhammad Ali, and State Minister for Finance Bilal Azhar Kiani, and other senior officials.
The directives from the prime minister reflect the government’s broader push to modernise the country’s power sector, enhance efficiency, and promote renewable energy sources as a sustainable alternative to imported fuel.
Copyright Business Recorder, 2026
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