ISLAMABAD, May 6, 2026 – Prime Minister Shehbaz Sharif has directed strict action against power distribution companies over regulatory violations, while emphasizing accelerated reforms in Pakistan’s energy sector.
Chairing a high-level meeting at the Prime Minister’s Office, Shehbaz Sharif ordered authorities to take departmental action against companies found violating the Economic Merit Order in recent days.
Focus on Renewable Energy Expansion
The prime minister stressed the need to develop a comprehensive strategy to meet future electricity demand through renewable sources, including hydropower, solar energy, and biogas.
He noted that increasing reliance on renewable energy would help reduce electricity generation costs and support economic growth, while also lowering dependence on imported fuels.
Crackdown on Power Theft
Shehbaz Sharif directed officials to take strict measures against electricity theft, stating that no leniency should be shown to those involved.
He also instructed authorities to speed up the installation of smart meters on transformers in areas with high losses and to promote a competitive electricity market.
Progress in Reducing Losses
Officials informed the meeting that significant improvements have been achieved in reducing losses and enhancing recovery:
• Transmission and distribution losses declined from 18.3% (June 2024) to 15.3% (March 2026)
• Recovery of electricity bills improved from 90% to 96.46% during the same period
These gains were attributed to effective enforcement measures and improved monitoring systems.
Private Sector Participation
The prime minister also directed authorities to fast-track efforts to supply 400 megawatts of electricity to the private sector in the first phase under the wheeling regime.
Officials said that work is underway to involve the private sector in three distribution companies, with the bidding process expected to conclude by November 2026.
Smart Meter Installation
The meeting was informed that smart meters have already been installed on 2,500 loss-making feeders across the country, contributing to better monitoring and reduced losses.
High-Level Participation
The meeting was attended by key cabinet members, including Azam Nazeer Tarar, Ahad Khan Cheema, Muhammad Aurangzeb, and Sardar Awais Leghari, along with senior officials from relevant institutions.