PM Shehbaz Orders Renewable Energy Strategy for Pakistan Power Sector

Prime Minister Shehbaz Sharif has directed officials to develop a comprehensive strategy focused on meeting Pakistan’s future energy needs through renewable sources, including solar, hydropower, and biogas.

Chairing a review meeting in Islamabad on power sector reforms, the prime minister stressed that increasing renewable energy generation will help reduce production costs and support overall economic growth. He also instructed authorities to minimize reliance on imported fuels.

The prime minister made it clear that there will be “no leniency for those involved in electricity theft” and ordered strict departmental action against distribution companies violating the Economic Merit Order. He further directed the swift installation of smart meters on transformers in high-loss areas.

Shehbaz Sharif also emphasized the need to develop a competitive electricity market and accelerate the implementation of the wheeling system. Under this system, 400 megawatts of electricity will be supplied to the private sector in the first phase.

Officials informed the meeting that power sector losses due to theft, non-recovery, and inefficiencies have significantly declined compared to last year, reflecting improved governance measures.

Transmission losses have decreased from 18.3% in June 2024 to 15.3% in March 2026, while bill recovery has improved from 90% to 96.46% during the same period.

The meeting was also briefed on progress in involving the private sector in three distribution companies, with the bidding process expected to conclude by November.

Additionally, smart meters have already been installed on 2,500 high-loss feeders as part of ongoing reforms to improve efficiency and reduce electricity losses.