The government has decided to conduct a comprehensive technical audit of all electricity Distribution Companies (DISCOs) to determine the actual scale, causes and geographical concentration of power theft, distribution losses and related technical and commercial inefficiencies. The decision was taken by a committee constituted under the Prime Minister’s directive on inefficiencies and electricity theft in DISCOs, as the government reviews measures aimed at reducing losses, improving recoveries and strengthening the performance of the country’s electricity distribution system.
The committee meeting was co-chaired by Federal Minister for Economic Affairs and Establishment Division Senator Ahad Cheema and Federal Minister for Power Division Sardar Awais Ahmad Khan Leghari. During the meeting, members reviewed the existing situation concerning electricity theft, distribution losses and recoveries across DISCOs, while also examining technology-based measures that could support better monitoring and enforcement. The committee received detailed briefings from the Power Division, National Electric Power Regulatory Authority (NEPRA), Ministry of Information Technology and Telecommunication, Pakistan Digital Authority and other relevant institutions involved in addressing issues within the electricity distribution network.
Under the decision, the Ministry of Information Technology and Telecommunication has been assigned responsibility for providing technological assistance and facilitating the technical audit through a transparent and credible mechanism. An Expression of Interest is expected to be issued shortly to engage qualified technical experts for the exercise. The committee also decided that the Terms of Reference for the audit would be finalised by the following week, setting out the scope and requirements for the assessment of DISCO operations, losses and electricity theft.
Senator Ahad Cheema stressed that the audit should go beyond simply measuring losses and include a detailed diagnostic assessment of their underlying causes. He said the exercise must produce credible and actionable findings that can be used to develop targeted measures against electricity theft and distribution inefficiencies. He also stated that the government remained focused on reducing electricity theft and that the financial burden of theft or inefficiencies within the distribution system would not be shifted onto consumers.
Cheema also described excessive billing as unacceptable and said the audit would help the government identify the specific areas where theft, losses or operational weaknesses are contributing to problems in the distribution system. He added that the findings would support evidence-based action and reiterated that steps would be taken to prevent any further increase in circular debt. The committee’s approach links the technical assessment of losses with broader efforts to improve governance, recoveries and financial management across the power distribution sector.
Federal Minister Sardar Awais Ahmad Khan Leghari said the Power Division was aligned with the committee’s objectives and was working to control electricity theft and distribution losses, particularly in DISCOs where theft remains high. The committee was also briefed on incentive-based solarisation pilot projects in areas served by Peshawar Electric Power Company (PESCO) and Quetta Electric Supply Company (QESCO). These projects are being considered in areas where electricity theft and distribution losses remain significant, with the aim of reducing pressure on the electricity network while addressing persistent theft and line-loss issues.
Technology and data were also a key part of the committee’s discussions, with members reviewing measures designed to detect irregularities, improve monitoring and strengthen accountability throughout the distribution network. The committee emphasised the need for effective use of digital tools and reliable data to identify unusual patterns and support more targeted action. The focus on technology is intended to complement field-level measures by giving authorities stronger information for monitoring theft and operational performance across different areas.
The committee also reviewed the recovery performance of DISCOs and noted improvement during the current year. The co-chairs stressed that this progress would need to be sustained through stronger governance, improved monitoring, technology-driven reforms and targeted interventions in areas experiencing high levels of losses. At the same time, they made clear that attempts by any DISCO to conceal electricity theft, distribution losses or operational inefficiencies through excessive billing would not be accepted, reinforcing the government’s stated position that consumers should not bear the cost of weaknesses within the distribution system.
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