PM orders technical audit of power firms’ billing systems

ISLAMABAD: In a bid to rein in persistent inefficiencies in the power sector, Prime Minister Shehbaz Sharif on Thursday ordered a technical audit of electricity distribution companies’ billing systems and directed officials to set measurable performance targets for utilities.

Chairing a meeting on Power Division affairs, the prime minister said power-sector reforms remained a priority, emphasising that improving the performance of distribution companies was essential to addressing longstanding weaknesses in the electricity system.

He directed authorities to set key performance indicators (KPIs) for distribution companies, with clear deadlines for measuring progress, and said the best-performing utility would be recognised.

He also called for the nationwide rollout of smart meters, saying the move was essential to improve transparency and efficiency in electricity supply.

He directed officials to intensify action against electricity theft across the power sector.

In a briefing, the officials told the meeting that distribution companies had reported a gradual decline in technical and commercial losses, with Islamabad, Lahore and Gujranwala utilities posting the lowest transmission and distribution losses in the previous financial year.

They said Islamabad Electric Supply Company (IESCO), Lahore Electric Supply Company (LESCO), Gujranwala Electric Power Company (GEPCO), Faisalabad Electric Supply Company (FESCO) and Multan Electric Power Company (MEPCO) achieved 100 per cent recovery during the financial year 2025-26.

The meeting was informed that DISCO support units had been established in Hyderabad, Sukkur, Lahore, Multan and Hazara as part of efforts to improve recoveries, reduce theft and strengthen technical oversight.

Officials said the first phase of installing an Asset Performance Management System (APMS) at the transformer level would be completed by Sept 30, 2026.

The system, they added, would enable better monitoring of the distribution network and help reduce electricity theft and loadshedding.

They said the government was also considering installing 16.2 million single-phase Advanced Metering Infrastructure (AMI) meters across the Multan, Lahore, Peshawar, Hazara and Quetta regions.

The prime minister directed officials to develop village-level solarisation projects aimed at easing power shortages in rural areas, with local solar initiatives being proposed as an alternative source of electricity for remote communities.

While praising Power Minister Awais Leghari, Economic Affairs Minister Ahad Cheema, Power Division Secretary Fakhar Alam and the power sector task force for their reform efforts, the prime minister conceded that the power sector continued to require further measures to address its longstanding shortcomings.

“Efforts are required to bring improvement to the power sector,” he added.

The meeting was attended by senior federal and provincial officials, including Law Minister Azam Nazeer Tarar, Minister for Power Awais Leghari, Economic Affairs Minister Ahad Cheema, Power Division Secretary Fakhar Alam, provincial chief secretaries and inspectors general (IGs) of police.

Copyright Business Recorder, 2026