PM told: DISCOs slash losses by Rs193bn

ISLAMABAD: In a rare breakthrough for the country’s beleaguered power sector, Prime Minister Shehbaz Sharif was informed on Tuesday that power distribution companies (DISCOs) had slashed their losses by a staggering Rs193 billion – marking a game-changing improvement of Rs242 billion in their financial health. While chairing a high-level meeting of the Cabinet Committee on Energy, the prime minister described the turnaround as “extremely encouraging,” calling it the first meaningful dent in the decades-long inefficiencies that have plagued the sector.

He emphasised that the reduction in DISCOs’ losses would facilitate the much-delayed privatisation of power distribution companies.

The committee was briefed on key developments, including the approval of critical amendments to the National Electricity Plan – Strategic Directive 87.

Privatisation of Discos: NA panel raises objection to selection criteria

The Power Division officials said that under these amendments, wheeling charges were set at Rs12.55 per kilowatt, and competitive bidding prices were incorporated into the framework.

Furthermore, the committee was informed that the Independent System and Market Operator (ISMO) had been officially operationalised, and market operations departments were established within the National Transmission and Dispatch Company (NTDC) and various DISCOs – signalling a shift towards a more robust, market-driven power sector.

The prime minister commended Federal Minister for Power Awais Leghari, Federal Secretary Dr Muhammad Fakhar Alam, and their teams for their “outstanding performance” amid tough reforms.

He also directed that letters of appreciation be sent to the chief executive officers (CEOs) of power distribution companies that had shown remarkable progress.

During the briefing, Power Division officials singled out Lahore Electric Supply Company (LESCO) and Multan Electric Power Company (MEPCO) for their standout performance in reducing losses.

However, the meeting was also informed that the mounting circular debt had reached Rs780 billion – a glaring challenge that continues to haunt the power sector.

Notably, a statement issued by the Prime Minister’s Office did not elaborate further on what was discussed regarding the circular debt issue – leaving one of the sector’s most pressing crises conspicuously unaddressed in official communication.

Copyright Business Recorder, 2025