Provinces urged to clear Rs150bn dues to avoid power crisis

The federal government on Thursday urged all four provincial governments to settle outstanding electricity bills totaling Rs150 billion to prevent power outages and economic losses.

In separate letters, Power Minister Awais Ahmad Khan Leghari requested the personal intervention of the chief ministers to ensure the dues are settled. He warned that, with limited financial resources available to Distribution Companies (Discos), it would be increasingly difficult to maintain uninterrupted power supply which would also exacerbate the growing circular debt burdening the economy. 

As of September 2024, Sindh has the highest electricity payables at Rs59.68 billion, followed by Balochistan with Rs39.6 billion and Punjab with Rs38.01 billion. Khyber Pakhtunkhwa has the lowest dues at Rs8.88 billion.

The minister emphasized that the federal government has launched reforms to improve the financial health of power distribution companies, including efforts to recover outstanding bills and tackle power theft.

Sindh’s government departments owe Rs59.68 billion, with substantial amounts due to Sukkur Electric Power Company (Sepco) and Hyderabad Electric Supply Company (Hesco). In Balochistan, the largest defaulter is the public sector, owing significant amounts to Quetta Electric Supply Company (Qesco). 

In Punjab, five electricity distribution companies are owed Rs38.01 billion, with Lahore Electric Supply Company (Lesco) and Multan Electric Power Company (Mepco) holding the largest payables. Khyber Pakhtunkhwa’s government departments owe Rs6.75 billion to Peshawar Electric Supply Company (Pesco) and Rs2.3 billion to Tribal Electric Supply Company (Tesco). The Power Minister reassured that the power division and Discos would coordinate to reconcile the bills and provide support to resolve the issue.