Revenues of power sector go up by Rs. 121bn after a successful anti-theft drive

In October, an anti-power theft campaign was launched by the government to fight the crisis .


An increase of Rs. 121 billion has been seen in the power sector revenues while reducing the losses of Rs. 16 billion, as per official data made available with APP.

In October of last year, an anti-power theft campaign was launched by the government. Under the campaign, smart meters were installed and a record of 23,049 MW of electricity was distributed through the transmission network.

Rs. 1.3 billion were recovered from 5,318 power thieves after 36,000 FIRs were filed against them. Distribution companies (DISCOs) were given a target of retrieving Rs. 8 billion from old receivables while the receivable figures were frozen (similar to where they stood at 31st October 2018).

The current government launched several initiatives to assist the power sector, making it self-sustainable.

AMI (Advanced Metering Infrastructure):

AMI (Advanced Metering Infrastructure) project is now being launched in Lahore Electric Supply Company and Islamabad Electric Supply Company with the help of Asian Development Bank (ADB) to prevent line loss and theft. The first AMI project is ready for execution and ADB has promised to provide $400 million.

ABC (Aerial Bundled Cable) is also another project to control and prevent illegal connections. These connections are made through direct hooking. PESCO or Peshawar Electric Supply Company and Sukkur Electric Supply Company (SEPCO) has already started Aerial Bundled Cables installation.

A necessary step of Power Divison is the drafting of Renewable Energy Policy 2019, and transmitting it to all stakeholders or their input or review. This policy will be brought before the cabinet for one final approval.

The share of renewable energy will increase to 20pc by 2025:

Figure: Pakistan’s Electricity Generation by Source7)


According to the renewable energy policy, it has been predicted that by the year 2025, the share of renewable energy will increase to 20pc from the current 4pc and by 2030, it will further increase to 30pc.

An arrangement of Rs. 200 billion from Islamic Sukuk has helped in paying the dues of the power sector. A brief plan has been sketched out by the Power Division to stop the growing circular debt. After June 2019, its growth will be reduced from Rs. 38 billion to Rs. 26 billion monthly. By the same month of next year, it will drop to Rs. 8 billion and by December 2020, it will be brought down to zero.

The Power Divison has been involved with different working groups of countries like China, Saudi Arabia, Central Asian Republics, and China, to improve the sector and to discover avenues of investment.

Due to improvement in the sector, load-shedding has decreased. Even in summers, where losses were on the high and many consumers would come out of the categories where zero load-shedding has applied, the number this year has increased.

Anti-corruption and anti-theft drive have shown positive impacts on the recovery of outstanding dues. Consumers are motivated to pay the bills on time. DISCOs recovery improved by 1pc since the campaign was launched. According to the reform plan, PESCO, QESCO, MEPCO, and LESCO will be divided for the betterment of their performance.

Also See: Circular Debt Will Be Reduced To 8 Billion From 38 Billion By June 2020

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