ISLAMABAD: Pakistan has recovered more than $370 million in a nationwide campaign against electricity theft, Pakistani state media reported on Sunday.
The South Asian nation’s power sector has been plagued by high rates of electricity theft and distribution losses, resulting in accumulating debts across the production chain.
In March, Pakistan’s Interior Minister Mohsin Naqvi announced that authorities had launched a “massive crackdown” against electricity and gas theft, aiming for fair distribution of utilities and access to all citizens.
“In a countrywide campaign against power pilferage, 105 billion ($377 million) rupees have been recovered,” the state-run Radio Pakistan broadcaster reported. “More than 83,000 individuals involved in power theft have been arrested.”
From June 30 till July 17, authorities collected more than Rs1 billion from power pilferers in Punjab’s Lahore, Gujranwala, Faisalabad and Multan cities as well as in the federal capital of Islamabad, according to the report.
Another Rs430 million were recovered from Peshawar, Hyderabad, Sukkur and Quetta during this period. This was a result of actions taken by the government to revive the country’s economy and bring people out of the power crisis.
Relevant institutions were determined to continue their operations until complete elimination of power theft from the country, it added.
The report comes days after Pakistan reached a staff-level agreement with the International Monetary Fund (IMF) for a new $7 billion loan.
Energy sector debt has already been a main issue that the IMF has highlighted in tackling Pakistan’s fiscal deficit, telling the South Asian nation to prevent further accumulation of circular debt in its power sector arising from subsidies and unpaid bills.
The lender has asked to implement reforms to reduce costs by improving electricity transmission and distribution, moving captive power into the grid, improving governance, and combating theft.
Pakistan recovered over $370 million in nationwide campaign against power theft — report
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Pakistan recovered over $370 million in nationwide campaign against power theft — report
- The South Asian nation’s power sector has long been plagued by high rates of electricity theft and distribution losses
- Authorities have arrested 83,000 individuals for involvement in power theft since the announcement of a campaign this year
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.
