Electricity subsidies: Minister questions reliability of BISP data
Speaking during a meeting of the National Assembly Standing Committee on Power, chaired by MNA Muhammad Idrees, the Minister addressed several issues concerning power subsidies and theft.
In response to a query by Rana Muhammad Hayat about domestic consumers using up to 200 electricity units per month, Leghari said that of the total 380 million consumers, around 180 million of them fall into this usage category, which sees an annual growth of approximately four million consumers.
Targeted power subsidies under BISP: Roadmap submitted to IMF, World Bank
He emphasised that subsidised electricity is meant to support low and middle-income households. 'Protected consumers are receiving electricity at an 80 percent discounted rate, which is the lowest in the region,' he stated.
The Minister pointed out that many consumers using up to 300 units per month have installed solar PV systems, which they utilise during daylight hours for purposes like water extraction and operating agricultural equipment. As a result, the subsidy burden has increased significantly. 'We are moving towards reforms to ensure subsidies are extended equitably to truly deserving individuals. However, there are discrepancies in the BISP data that need to be addressed to ensure fair treatment,' Leghari said.
On the issue of minor variations in monthly consumption— such as 200 versus 201 units— the Minister noted that a threshold must be established. He added that the Prime Minister has launched the 'Apna Meter, Apni Reading' mobile application to help curb over-billing.
When asked about power sector losses, the Minister revealed that electricity theft accounts for Rs 250 billion annually, out of total losses amounting to Rs 500 billion. The remaining half is attributed to non-recovery of bills.
He clarified that electricity cannot be supplied to illegal housing societies or slums (katchi Abadis) unless requested by local authorities. Distribution companies (Discos), he added, are only obligated to provide connections upon formal requests from relevant authorities.
'While supplying electricity to informal settlements may be financially beneficial for Discos, it ultimately burdens the national exchequer,' Leghari explained. 'Although increased consumption can lower tariffs, we cannot extend services to unregulated developments.'
The Minister confirmed to Business Recorder that Sindh Chief Minister Murad Ali Shah had responded to his earlier correspondence regarding the discontinuation of Electricity Duty (ED) on power bills starting July 1, 2025. Responses from other provinces are still awaited, he said, adding that annual ED collections currently stand at around Rs 60–70 billion. 'We'll be discussing Sindh's response at the Prime Minister's level,' he said.
Leghari acknowledged that the ED is a legitimate provincial right, but argued that provinces should collect it independently instead of using Discos as collection agents. He also expressed a desire to simplify power bills. 'If there's any variation in ED collection, a settlement process is followed. But I do not want to act as a collecting agent for provinces,' he asserted.
In response to another query, Leghari confirmed that discussions with the International Monetary Fund (IMF) and development partners are ongoing regarding subsidised electricity tariffs for the industrial and agricultural sectors.
However, the Committee decided to defer agenda items related to discriminatory electricity load-shedding by Hyderabad Electric Supply Company (HESCO) and denial of basic utility rights to bill-paying constituents, as well as the comprehensive briefing by the CEO, HESCO, on electricity load-shedding and completion of grid station works at Jam Nawaz Ali, district Sanghar.
The Committee reviewed the comprehensive report on the implementation status of its previous recommendations from the meeting held on May 29, 2025, and expressed satisfaction with the majority of the actions taken. The Special Secretary, Power Division, informed the Committee that in response to the Committee's recommendation, the issue of initiating electricity billing in 25 villages in Shabqadar, district Peshawar, was reconsidered. Meetings had been convened with the local community and concerned MNAs to resolve the matter.
The CEO, PESCO, informed the Committee that local residents remain unwilling to clear outstanding dues or accept individual electricity meters, insisting instead on a fixed monthly lump-sum payment per household. The MNA from Charsadda apprised the Committee that the issue dates back to 1999, and electricity connections to the residents were disconnected in 2022. To resolve the issue, the MNA from Charsadda proposed the provision of solar energy system to the affected villages.
However, the Minister for Power explained that actions are currently under way to curb illegal connections, and electricity meters are being installed based on Computerised National Identity Cards (CNICs). He further requested that the concerned MNA provide details of unauthorised connections. The Committee decided that upon receipt of the details, a sub-committee would be constituted to investigate the matter further.
The Committee was also briefed on the internship programs offered during the Financial Year 2024-25 across departments under the Power Division. It was informed that a total of 1,996 unpaid and 551 paid internships had been offered. While student interns receive only a token amount of Rs. 3,000 per month, graduate engineers under the apprenticeship program are paid Rs. 75,000 per month for two-month tenure. Members expressed concern over this disparity and directed the Division to explore options for establishing a uniform and market-competitive stipend policy.
Further, the Committee deliberated on the non-completion of work on two 11KV feeders— Jhalkot and Komalia— crossing the River Indus in Kohistan. It directed that WAPDA release the required funds to PESCO for timely completion of these projects. A comprehensive joint briefing was also given by HESCO and K-Electric regarding the provision of an alternate grid station (500KV to 220KV) to enhance power supply to Sindh and Karachi. This included proposals for additional transformers, upgrading the existing transformers at Jamshoro, and establishing a new 220KV Grid Station at Nawabshah.
NTDC also presented a briefing on the development of an alternate power source near Sekhat Road (500KV to 220KV) in Sindh, and the installation of transmission lines from the Mirpurkhas NTDC Grid Station.
Syed Waseem Hussain, MNA from Hyderabad, raised concerns about the current electricity distribution status, noting that HESCO is also supplying electricity to Karachi. He stated that due to rising demand, the distribution system is often rendered dysfunctional. At present, demand stands at 1600MW, while supply is limited to 1100MW.
He proposed the establishment of a new grid station in response to the area's growing population. The Committee, after the briefing, directed the CEO, HESCO and MD, NTDC to prepare a comprehensive technical and financial report addressing grid issues and power sector reforms for presentation in the next meeting.
Rana Muhammad Hayat Khan, MNA from Punjab, raised the issue of numerous illegal electricity connections in Katchi Abadis in major cities. He proposed regularising these connections through fines and issuing formal demand notices.
The Minister responded that power supply planning to new housing schemes depends on the prior approval of layout plans by municipal or development authorities, as power infrastructure needs to be aligned with other essential services such as water, sanitation, and road networks.
Lastly, the Committee decided to take up in its next meeting the issue of varying charges levied on consumption of 200 and 201 electricity units. The Minister; however, proposed that the next session should primarily focus on electricity theft and the status of bill recoveries across the Division.
The meeting was attended by MNAs Sheikh Aftab Ahmed, Chaudhry Naseer Ahmed Abbas, Syeda Nosheen Iftikhar, Rana Muhammad Hayat Khan, Muhammad Abdul Ghaffar Watto, Muhammad Shaharyar Khan Mahar, Syed Abrar Ali Shah, Syed Waseem Hussain, Malik Anwar Taj, Sher Ali Arbab, Haji Imtiaz Ahmed Choudhry, and Ali Afzal Sahi. Senior officers from Power Division, NTDC, HESCO, PESCO, K-Electric and TESCO were also present.
Copyright Business Recorder, 2025
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