Power Division applauds PESCO for remarkable progress
The Power Division has commended the Peshawar Electric Supply Company (PESCO) for its outstanding performance and significant reforms during the current fiscal year.
In a high-level meeting held at the Power Division, the Minister for Power, alongside Secretary Power expressed appreciation to Chairman Board of Directors PESCO, Himayatullah Khan and their team for the strides made by the company in improving operational efficiency and service delivery.
He added that if the current trend continues, there is a strong likelihood that the transmission and distribution (T&D) and recovery targets set for Pesco till June 2025 may be achieved.
The Minister for Power praised PESCO's leadership for its dynamic and targeted initiatives that have led to a marked improvement in key performance indicators.
Particular recognition was given to the robust policy measures implemented under the supervision of Chairman Pesco, which included industrial sector reforms, an aggressive crackdown on power theft, installation of smart and AMR meters, and a wide-reaching revenue recovery campaign.
Thanks to these efforts, PESCO has achieved a noticeable reduction in T&D losses - bringing the figure down to 34.73% in the current fiscal year from 36.02% % previous year.
Simultaneously, revenue collection surged to an impressive 88.73%, reflecting enhanced operational efficiency and consumer compliance thus improving the financial health of the company.
Notably, during March 2025 alone, T&D losses were reduced, and revenue recovery improved by 4% compared to the same month in the previous year.
As a result, financial losses dropped significantly to Rs8.06 billion in March 2025 from Rs12.06 billion in March 2024 - a testament to the effectiveness of reforms.
It was also highlighted in the meeting that The Chairman of the Board of Directors PESCO, Himayatullah Khan, has placed a strong emphasis on implementing industrial reforms to ensure a reliable and uninterrupted power supply to the industrial sector.
These initiatives are set to significantly increase the energy demand of PESCO while driving industrial growth and boosting the overall economy of the area.
Further emphasizing infrastructure development, PESCO has actively pursued the construction of new grid stations, energization of 11KV feeders, and strategic area planning.
This includes separating good-paying areas and industrial consumers from general consumers to optimize supply and revenue outcomes.
In a technological leap, PESCO has introduced Automated Meter Reading Infrastructure to eliminate manual meter reading, ensuring accurate billing and minimizing human error. These advancements underscore the company's commitment to modernization and transparency.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
20 hours ago
- Business Recorder
Petroleum products: 26.4pc rise in PL envisaged
ISLAMABAD: The federal budget 2025-26 envisages a 26.4 percent raise in petroleum levy (PL) on petroleum products after raising its maximum limit to Rs 90 per litre from Rs 70 per litre. A significant Rs 1,468.395 billion PL on petroleum products has been budgeted for upcoming fiscal year. This represents a substantial rise of Rs 307.395 billion compared to the current revised estimates of Rs 1,161 billion for the ongoing fiscal year. It is also considerably higher than the original budgeted PL of Rs 1,281 billion for the outgoing fiscal year 2024-25. Next fiscal year's budgeted PL is Rs 158 billion higher than what was projected for next fiscal year under this head by the International Monetary Fund in its first staff-level report uploaded on its website on May 17, 2025. The projected collection is Rs 1311 billion for next fiscal year. Last 3-1/2 months of FY25: petroleum levy hike by Rs18.02 to generate Rs90bn revenue The PL revenue has been given a high priority by successive federal governments as it is not part of the Federal Divisible Pool (FDP) that has to be shared with the provinces as per the National Finance Commission (NFC) formula. A budgeted target of Rs 105 billion through imposition of a levy on Off the Grid (Captive Power Plants) has been set for next fiscal year. The National Assembly passed the 'Off the Grid (Captive Power Plants) Levy Bill, 2025'. This levy, initially 5 percent, will increase to 10 percent by July 2025, 15 percent by February 2026, and 20 percent by August 2026. The government has also proposed to increase the Gas Infrastructure Development Cess (GIDC) collection at Rs 2.4 billion for the next fiscal year from revised current estimates of Rs 1 billion. The GIDC was originally budgeted at an amount of Rs2.5 billion for the current fiscal. In June 2020, the Supreme Court of Pakistan ruled that various sectors of the economy must clear outstanding Rs 407 billion GIDC in 60 months but the government has yet to realize this amount due to stay orders obtained by various companies. Natural Gas Development Surcharge (GDS) - the difference between prescribed and sale price of gas that goes to provinces - is projected to bring Rs49.437 billion next year against original budgeted Rs25.618 billion and revised Rs48 billion in the outgoing fiscal year. The government has also envisaged to collect Rs5 billion for the PL on Liquefied Petroleum Gas (LPG) in next fiscal 2025-26. This is compared to the revised target of Rs 3.156 billion for the current fiscal year. The original budget for the PL on LPG in the current fiscal year was at Rs3.537 billion. The budget for fiscal year 2025-26 envisages Rs30 billion to be retained as a discount on local crude oil prices. This is higher than the revised estimate of Rs 25 billion for the current fiscal year the same as budgeted for the current year. The budget for next year proposes an increase in royalty on crude oil and increase in royalty on natural gas for provinces. The budgeted amount for royalty on crude oil is set at Rs69 billion for next financial year against the revised estimates of Rs64 billion for the outgoing year. The government budgeted Rs38 billion in royalty on natural gas in the next financial year against a revised target of Rs135 billion and budgeted Rs103.751 billion in 2024-25. Next year's budget envisages Rs20 billion on account of windfall levy on crude oil against budgeted amount of Rs 28 billion for the current financial year 2024-25. Windfall levy on gas has been budgeted at Rs 450 million which was revised estimates of Rs450 million in current fiscal year. Miscellaneous receipts of oil and gas companies are budgeted to generate Rs 1887.682 billion against a revised estimate of Rs 1464.606 billion and budgeted estimates of Rs 1528.46 billion in the outgoing financial year. Copyright Business Recorder, 2025
Express Tribune
20 hours ago
- Express Tribune
Subsidies trimmed by Rs180b to Rs1.18tr
The Power Division has urged Nepra to align KE's tariff structure with national standards to ensure fairness, transparency and affordability. photo: file Listen to article The government has slashed the allocation for subsidies to Rs1.18 trillion for the upcoming fiscal year 2025-26, of which Rs1.036 trillion will go to the power sector. The government had earlier allocated Rs1.36 trillion in subsidies for the power sector and other commodities, which went up to Rs1.378 trillion for the ongoing financial year, according to revised estimates. With the subsidy allocation for FY26, the government expects to provide some relief for consumers of electricity, petroleum, food, urea, wheat subsidy, and mark-up for low-cost housing. However, it remains uncertain whether the government will be able to stay within the subsidy ceiling or exceed the target, as happened in the outgoing year. According to the Budget Book released on Tuesday, the subsidy bill has been estimated at Rs1.186 trillion for the next fiscal year, a reduction compared to the current financial year's allocation. Out of the total subsidies, a major chunk worth Rs1.03 trillion will go to the power sector compared to Rs1.19 trillion for the ongoing financial year. For the next fiscal year, the government has earmarked Rs249 billion — down from Rs276 billion — for payments for Inter-Disco tariff differential. An amount of Rs40 billion has been set aside for the merged districts of Khyber-Pakhtunkhwa (K-P including Federally Administered Tribal Areas (FATA) subsidy), compared to Rs65 billion allocated during the outgoing fiscal year for FATA subsidy arrears. The government has also set aside Rs74 billion for the next financial year — down from Rs108 billion — for the tariff differential for Azad Jammu and Kashmir (AJK). An amount of Rs48 billion has been earmarked for the Pakistan Energy Revolving Fund (PERA), the same as the ongoing financial year. The subsidy allocation to cover K-Electric's (KE) tariff differential has been slashed to Rs125 billion for the next fiscal year, compared to Rs171 billion allocated during the outgoing financial year. However, the government has increased the allocation to Rs1 billion for agriculture tubewells in Balochistan for KE consumers, up from Rs500 million during the outgoing year. Of the total, the government has allocated Rs95 billion for payments to Independent Power Producers (IPPs) for the next fiscal year. No allocation was originally made for IPPs in the outgoing year, but later Rs115 billion was provided in the revised budget estimates. The government has also allocated a Rs1.2 billion subsidy for petroleum for the next fiscal year, down from Rs18.4 billion. An amount of Rs1.2 billion has been earmarked to meet the shortfall in guaranteed throughput of Pakistan Electric Power Company (PEPCO), down from Rs2.4 billion this year. An allocation of Rs6 billion was also made during the outgoing fiscal year to cover the shortfall of Asia Petroleum; however, no such allocation has been made for the next year. For the ongoing fiscal year, the government had allocated Rs10 billion for domestic consumers through Sui Northern Gas Pipelines Limited (SNGPL), but no allocation has been made for this purpose in FY26. The subsidy cushion for the Pakistan Agricultural Storage and Services Corporation (PASSCO) has been increased to Rs20 billion from Rs12 billion for the current year. Of this, Rs14 billion will go for wheat reserve stocks and Rs6 billion for the cost differential in the sale of wheat. The government has slashed the subsidy allocation to Rs24 billion for the next fiscal year from Rs68 billion for industries and production. Of this, Rs9 billion will go as incentives for electric vehicles (EVs), and Rs15 billion to clear Utility Stores Corporation of Pakistan (USCP) sugar subsidy arrears. No allocation has been made for the Ramazan Package or USCP PM Package. However, the government has increased the allocation to Rs104 billion for 'other subsidies' against Rs75 billion allocated earlier, which rose to Rs90 billion in revised estimates this year. Of this, Rs20 billion will go for wheat subsidies in Gilgit-Baltistan (G-B), and Rs15 billion for imported urea fertiliser. The Naya Pakistan Housing Authority will get Rs1 billion, with an additional Rs7 billion for the mark-up subsidy and risk-sharing scheme for, farm mechanisation, under the Kissan Package. The government will release Rs1 billion for the refinance and credit guarantee scheme (SME Asaan Finance), while Rs5.4 billion has been allocated for SME sector financing enhancement. An allocation of Rs30 billion — up from Rs13 billion — has been made for the mark-up subsidy supporting the phase-out of SBP refinancing facilities. Further allocations include Rs3 billion for 5km radius gas schemes, Rs5 billion for the EFS Enhanced Plan-Exim and Related Scheme, Rs5 billion for housing sector subsidies, and Rs7.3 billion for the Metro Bus subsidy.
Express Tribune
2 days ago
- Express Tribune
Power capacity rises to 46,605MW
Pakistan's installed electricity generation capacity rose to 46,605 megawatts (MW) during the first nine months of the ongoing financial year 2024-25, adding further strain on consumers due to mounting capacity payments for idle plants that produce no power. According to the Economic Survey 2024-25 released on Monday, the country's generation capacity grew by 1.6% from 45,888 MW recorded during the same period last year. This increase was primarily attributed to the addition of 2,813 MW through net metering, said the government. However, this expansion has intensified capacity payments, which now stand at Rs2.5 trillion to Rs2.8 trillion annually, burdening consumers who are compelled to pay for plants that remain idle. In an effort to reduce this financial strain, the government has terminated Power Purchase Agreements (PPAs) with several Independent Power Producers (IPPs) effective October 1, 2024. These include HUB Power, Lalpir Power, Pakgen Power, Rousch Power, Saba Power, and Atlas Power. The composition of the country's installed capacity by source stands at thermal (55.7%), hydel (24.4%), renewable (12.2%), and nuclear (7.8%). While thermal power remains the dominant source, its share has declined in recent years, reflecting a gradual shift toward indigenous and cleaner energy alternatives. Out of total electricity generation of 90,145 gigawatt-hours (GWh), the share of hydel, nuclear, and renewable energy combined reached 53.7%a significant move towards more sustainable energy sources. As of March 2025, the Private Power and Infrastructure Board (PPIB) had facilitated 88 operational IPPs with a cumulative capacity of 20,726 MW. The government's focus on renewable and local energy is further underlined by the fact that 84% of upcoming projects are in the clean energy sector. Power consumption Electricity consumption, however, showed a decline. During July-March FY2025, Pakistan's total electricity consumption stood at 80,111 GWh, down 3.6% from 83,109 GWh in the corresponding period of FY2024. This reduction is largely attributed to energy conservation measures, increased power tariffs, the growing use of off-grid solar systems, and sluggish industrial activity. The household sector accounted for 49.6% (39,728 GWh) of total consumption, up from 47.3% (39,286 GWh) the previous year. This indicates rising residential demand, likely driven by population growth, increased use of electrical appliances, and stable weather patterns. In contrast, industrial consumption fell to 21,082 GWh from 22,031 GWh, lowering its share from 26.5% to 26.3%. The agriculture sector saw the sharpest dropa 34.3% decline from 6,951 GWh to 4,566 GWhreducing its share to 5.7%. This was likely due to changing irrigation practices, rainfall variability, and a shift towards diesel-powered or solar alternatives amid high electricity prices. The commercial sector posted a slight increase in consumption, rising from 6,776 GWh to 6,898 GWh, lifting its share to 8.6%, reflecting modest improvements in retail and business activities in urban areas. Oil sector In the oil sector, total petroleum product consumption reached 13.17 million metric tonnes (MMT) during July-March FY2025, up 7.04% from 12.30 MMT in the same period last year. The transport sector remained the largest consumer, with usage increasing 7.99% to 10.54 MMT, comprising 80% of total demand. This growth reflects improved trade and logistics activity, alongside greater mobility. Industrial oil consumption fell 7.35% to 755.40 thousand tonnes due to reduced output in energy-intensive industries and fuel-switching to cheaper alternatives such as natural gas. The power sector's petroleum use plummeted 77.68% to just 116.21 thousand tonnes as reliance on furnace oil declined in favour of hydropower, coalincluding Thar coalnuclear energy, and imported LNG. The domestic sector's petroleum use rose moderately by 7.34%, while the agriculture sector posted a slight decline of 3.35%. The government sector recorded a small increase of 3.27%. During July-March FY2025, petroleum product imports climbed to 12.53 MMT, up 12.5% in volume, though the import bill remained stable at $8.4 billion due to lower global prices and improved procurement practices. Motor spirit (petrol) imports rose 11.3% in volume but fell 5.1% in value to $3.04 billion, reflecting favourable global prices. High-Octane Blending Component (HOBC) imports soared more than eightfold to 144.44 thousand tonnes, with the value rising to $108.40 million amid growing demand for premium fuels. High-speed diesel imports also increased 17.4% to 1.45 MMT, though the import bill edged lower to $1.01 billion. Crude oil imports rose by 8.8% to 6.76 MMT, but costs remained flat at $4.11 billion due to softened global prices. Higher crude imports align with increased domestic refining activity aimed at meeting local fuel demand. Jet fuel imports almost doubled to 195.67 thousand tonnes, with their value rising to $143.10 million, signalling recovery in domestic and international air travel. A small quantity of aviation gasoline (0.24 thousand tonnes) was imported, not recorded in the previous year. Gas sector Domestic natural gas met 29.3% of the country's total primary energy supply in FY2024. The country has a 14,276 km transmission network and over 200,000 km of distribution pipelines serving 10.7 million consumers. To address rising demand, the government is enhancing both local production and imports. Two Floating Storage Regasification Units (FSRUs) currently process 1,200 million cubic feet per day (MMCFD) of RLNG.
