Prime Minister Shehbaz Sharif has ordered a comprehensive technical audit of the billing systems used by power distribution companies (Discos), reaffirming that reforming Pakistan’s power sector remains one of the government’s top priorities. The move is aimed at improving transparency, reducing losses and strengthening accountability across the electricity distribution network.
Power Sector Reforms Remain Top Priority
Chairing a review meeting on power division matters, the prime minister acknowledged that the performance of power distribution companies had improved significantly in recent months. However, he stressed that sustained efforts were still required to build on these gains and deliver reliable electricity services to consumers.
According to a statement issued by the Prime Minister’s Office, the government remains committed to implementing structural reforms that improve operational efficiency while reducing financial losses in the power sector.
Smart Meter Rollout Declared Essential
The prime minister described the nationwide deployment of smart meters as an indispensable component of Pakistan’s power sector reforms.
He directed authorities to ensure strict enforcement measures at every level of the electricity distribution system and reiterated that electricity theft must be eliminated completely.
PM Shehbaz also instructed the Power Division to develop clear performance indicators for evaluating each Disco. He called for measurable targets with defined timelines to strengthen accountability and improve service delivery.
Best-Performing Discos to Receive Recognition
To encourage better performance, the prime minister announced that the best-performing power distribution company would be formally recognised and rewarded.
He said the initiative would promote healthy competition among Discos and motivate management teams to improve operational efficiency, reduce losses and enhance customer service.
Village Solarisation to Reduce Load-Shedding
Addressing electricity shortages in rural areas, the prime minister directed officials to prepare village-level solarisation projects.
He said decentralised solar energy solutions could help reduce pressure on the national grid while providing more reliable electricity to underserved communities.
The initiative forms part of the government’s broader strategy to diversify Pakistan’s energy mix and promote renewable energy adoption.
Distribution Losses Continue to Decline
Officials informed the meeting that both technical and commercial losses across several Discos had continued to decline during the last fiscal year.
The Islamabad Electric Supply Company (IESCO), Lahore Electric Supply Company (LESCO) and Gujranwala Electric Power Company (GEPCO) recorded the lowest transmission and distribution losses among all distribution companies.
The briefing also revealed that IESCO, LESCO, GEPCO, Faisalabad Electric Supply Company (FESCO) and Multan Electric Power Company (MEPCO) achieved 100 percent recovery rates during FY2025-26.
Anti-Theft Measures Expanded
Officials said Disco Support Units have already been established in Hyderabad, Sukkur, Lahore, Multan and Hazara to strengthen recovery efforts, curb electricity theft and address operational issues more effectively.
These specialised units form a key component of the government’s ongoing reforms aimed at improving financial sustainability across the power distribution network.
Asset Monitoring and AMI Metering Planned
The meeting was also briefed on progress under the Asset Performance Management System (APMS).
Officials said the first phase of the project, involving transformer-level monitoring, is expected to be completed by September 30. The system is designed to improve asset management while helping reduce electricity theft and load-shedding.
In addition, authorities presented a proposal to install 16.2 million single-phase Advanced Metering Infrastructure (AMI) meters across Multan, Lahore, Peshawar, Hazara and Quetta.
If approved, the project would become one of Pakistan’s largest smart metering initiatives, improving billing accuracy and reducing distribution losses.
Conclusion
The government’s latest directives highlight its continued focus on transforming Pakistan’s power sector through greater transparency, technology adoption and stronger operational oversight. The planned audit of Discos’ billing systems, combined with smart meter deployment, anti-theft initiatives and rural solarisation projects, reflects a broader strategy to improve financial sustainability while delivering more reliable electricity services across the country.