ISLAMABAD: The caretaker federal government on Wednesday announced plans to launch a crackdown across the country on electricity theft in a bid to reduce the ballooning circular debt in the power sector, ARY News reported.
The measures were announced by caretaker Minister for Information and Broadcasting Murtaza Solangi, and Power Minister Energy Muhammad Ali during a press conference.
The power minister said that there are 10 distribution companies in Pakistan which are facing a total loss of Rs589 billion annually. He said electricity theft and nonpayment of electricity bills are the major causes of this huge loss.
“The interim government has planned a comprehensive three-pronged strategy to deal with the issue of power theft,” he said.
Detailing the measures, the minister said that technology interventions will be made in the areas where electricity theft is 15 to 30 percent. Secondly, the involvement of the private sector will be ensured in the management where electricity theft is from 30 to 60 percent while enforcement will be ensured in the areas where power theft is more than 60 percent.
“There is a dire need to introduce reforms in the energy sector,” he said, adding that the government is reviewing the performance of the Board of Directors of power distribution companies and will bring change in their management.
It is pertinent to mention here that the inflated power bills triggered country-wide protests from Karachi to Khyber and protests in some parts of the country turned violent.
The protesting masses have been demanding that the government should end the provision of free electricity to the notables and provide them relief as the bills they have been receiving are more than their salaries.
A day earlier, it was reported that Pakistan failed to convince the IMF for relief in electricity bills as it could affect the recovery of up to Rs6.5 billion as per the government’s plan.
Sources closer to the finance ministry told ARY News that Pakistan and IMF did not reach a consensus over the relief on electricity bills. It was learnt that the caretaker government told the Fund in its plan that the relief would affect the recoveries by up to Rs6.5 billion.
It emerged that the Fund rejected the plan as it could have affected the recoveries by more than Rs15 billion. The IMF also sought a plan from Pakistan to fill the financial gap of Rs15 billion.
