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 highlights Gwadar transshipment role as shipping routes face disruption over regional tensions

Updated 05 March 2026
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Pakistan highlights Gwadar transshipment role as shipping routes face disruption over regional tensions

  • Pakistani ports possess “untapped potential” to attract global shipping lines for transshipment operations, says minister
  • Pakistan eyes leveraging Gwadar as regional transshipment hub as Iran’s closure of Strait of Hormuz disrupts global maritime trade

KARACHI: Pakistan’s Maritime Affairs Minister Junaid Anwar Chaudhry on Thursday highlighted the importance of the port city of Gwadar’s transshipment role as major shipping routes, including the Strait of Hormuz, face disruption due to Iran’s ongoing conflict with the US and Israel in the Gulf. 

The meeting takes place as Iran has effectively closed the Strait of Hormuz, a strategic waterway that lies between it and Oman. It is one of the world’s most critical oil transit routes, with roughly 20 percent of global oil supplies passing through it. Iran has vowed it will attack any ship that enters the strait, causing energy prices to rise sharply on Monday amid disruptions to tanker traffic in the waterway.

Gwadar is a deep-sea port in Pakistan’s southwestern Balochistan province that lies close to the Strait of Hormuz. Pakistani officials have in the past highlighted Gwadar’s geostrategic position as the shortest trade route to the Gulf and Central Asia, stressing that it has the potential to become a regional transshipment hub.

Chaudhry chaired a high-level meeting of government officials to assess emerging logistical challenges facing Pakistan’s trade, particularly in the energy sector, amid tensions in the Gulf. 

“Special focus was placed on fully leveraging the potential of Gwadar Port as a regional transshipment hub and positioning it as an alternative of regional instability,” Pakistan’s maritime affairs ministry said in a statement. 

The minister said Pakistani ports possessed “significant untapped potential” to attract international shipping lines for transshipment operations, noting that it could also ensure long-term sustainability and growth of the country’s maritime sector.

Participants of the meeting discussed measures to strengthen Pakistan’s position as a viable alternative transit and transshipment destination, as key waterways are affected by the disruption. 

The committee also reviewed proposals to amend relevant rules and regulations to facilitate international transshipment operations through on-dock and off-dock terminals.

The chairmen of the Port Qasim Authority, Karachi Port Trust and Gwadar Port Authority attended the meeting, briefing committee members on the current operational readiness of their ports. They spoke about the available capacity for container transshipment, bulk cargo handling and refueling services at Pakistani ports. 

The port in Gwadar is a central part of the China-Pakistan Economic Corridor (CPEC), under which Beijing has funneled tens of billions of dollars into massive transport, energy and infrastructure projects in Pakistan.

Pakistan has long eyed the deep-sea port as a key asset that can help boost its trade with Central Asian states, the Gulf region and ensure the country earns valuable foreign exchange.