Pakistan to set up task forces to reduce electricity theft causing $1.9 billion revenue shortfall

Men work on electric pylons along the roadside in Karachi on May 30, 2021. (AFP/File)
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Updated 06 September 2023
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Pakistan to set up task forces to reduce electricity theft causing $1.9 billion revenue shortfall

  • The caretaker energy minister mentions special courts to deal with issues related to power theft in the country
  • Pakistan has recently witnessed widespread protests over high electricity bills that have mounted the cost of living

ISLAMABAD: Pakistan’s caretaker administration said on Wednesday it was setting up special task forces on provincial and district levels to combat massive electricity theft as the country grapples with a significant revenue shortfall of Rs589 billion ($1.9 billion) in the power sector annually.

The problem, which is more rampant in certain areas of the country than others, has forced successive governments to raise power tariffs in Pakistan.

Due to the widespread protests over inflated electricity bills and rising petroleum prices in recent days, however, the interim administration decided to take the issue head-on to rationalize power tariffs by minimizing its financial losses.

“We got the prime minister’s instructions to crack down on this, reduce the theft of electricity and recover revenue from those who do not pay the bills,” the country’s energy minister, Muhammad Ali, told reporters during a media briefing in Islamabad.

“We will establish a provincial-level task force, with the provincial secretary of energy or the home secretary leading it,” he continued. “At the divisional level, a task force will be formed under the commissioner’s leadership, and at the district level, the deputy commissioner will head it and at the sub-district level, the assistant commissioner will be in charge, whereas we will oversee all these activities from Islamabad.”

He said there were different levels of theft and recovery in different parts of Pakistan.

“The total loss due to theft or not receiving the bills during one year is Rs589 billion,” the minister added.

“We have all the data of the areas where electricity theft is more and we will pay greater attention to them and launch a crackdown to reduce the losses,” he continued.

Ali said the government had devised a strategy to deal with power theft.

“The areas where the theft of electricity is less – some 15 to 30 percent – we will intervene by using technology and rely on smart metering and other solutions,” he informed.

However, it would launch a proper enforcement mechanism at places where these losses exceed 60 percent.

At the same time, he noted that the government had made a list of those officers involved in the theft of electricity and would transfer them to other areas.

“We are working on an electricity theft control act and will establish an elaborate enforcement infrastructure in the country,” said the minister.

He informed the government also planned to set up special courts that would deal with complaints and punishments related to power theft in the country.

“Our target is to finalize the law in the next two to three weeks, move it forward, and send this ordinance for approval,” he added.


Pakistan reviews austerity measures amid Middle East crisis, urges strict nationwide implementation

Updated 11 March 2026
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Pakistan reviews austerity measures amid Middle East crisis, urges strict nationwide implementation

  • Deputy Prime Minister Ishaq Dar chairs review meeting of austerity steps
  • Officials briefed on salary cuts, school closures, four‑day week, petrol conservation

ISLAMABAD: Pakistan’s government on Wednesday assessed progress on a sweeping set of austerity measures introduced to mitigate the country’s economic strain from sharply rising global oil prices and supply disruptions linked to the ongoing war in the Middle East.

Prime Minister Shehbaz Sharif this week announced a series of austerity steps, including a four‑day work week for government offices, requiring 50  percent of staff to work from home, cutting fuel allowances for official vehicles by half, grounding up to 60  percent of the government fleet and closing all schools for two weeks to conserve fuel amid the global oil crisis.

The measures were unveiled in response to global oil market volatility triggered by the conflict involving the United States, Israel and Iran, which has disrupted supply routes such as the Strait of Hormuz and pushed crude prices sharply higher, straining Pakistan’s heavily import‑dependent energy sector.

“The meeting stressed the importance of strict and transparent adherence to the austerity measures, promoting fiscal responsibility and prudent use of public resources,” Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar said in a statement.

He was chairing a meeting of the Committee for Monitoring and Implementation of Conservation and Additional Austerity Measures, constituted under the directions of the PM, bringing together federal and provincial officials to review execution of the broad cost‑cutting plan. 

Dar emphasized the government’s commitment to enforcing the PM’s austerity steps nationwide. The committee’s review also covered reductions in departmental expenditure, deductions from salaries of senior officials earning over Rs. 300,000 ($1,120), and coordination with provincial administrations to ensure uniform implementation of the plan.

Participants at the meeting reiterated that all ministries and divisions must continue strict monitoring and reporting, with transparent oversight mechanisms, as Pakistan navigates the economic pressures from the prolonged Middle East crisis and its fallout on global energy and trade markets.