Provinces Directed to Settle Rs150bn Power Dues to Avoid Supply Disruptions

Power-sector

ISLAMABAD: The federal government has urged all four provincial administrations to clear outstanding electricity bills amounting to Rs150 billion to prevent power cuts and mitigate financial strain on the national economy.

In letters addressed to the chief ministers, Power Minister Awais Ahmad Khan Leghari called for urgent intervention to ensure the clearance of dues owed by provincial departments. He cautioned that with the limited financial resources available to Distribution Companies (Discos), sustaining uninterrupted power supply would be challenging, further exacerbating the circular debt crisis.

According to the minister, the Sindh government is the largest defaulter with payables of Rs59.68 billion, followed by Balochistan with Rs39.6 billion, Punjab with Rs38.01 billion, and Khyber Pakhtunkhwa (KP) with Rs8.88 billion as of September.

Mr. Leghari emphasized the federal government’s ongoing reforms aimed at enhancing the efficiency and financial stability of power utilities. He noted that the recovery of dues, especially from provincial government departments, is critical to the success of these reforms. “The financial health of Discos hinges on robust resource generation, anti-theft measures, and debt recovery,” he said.

The minister requested the chief ministers to instruct relevant departments to expedite payments, assuring that the power division and Discos would facilitate any clarifications or reconciliations required.

Breakdown of Dues
Sindh: Rs59.68 billion, including Rs38.16 billion owed to Sukkur Electric Power Company (Sepco) and Rs21.5 billion to Hyderabad Electric Supply Company (Hesco).
Balochistan: Rs39.6 billion, largely due to unpaid bills to Quetta Electric Supply Company (Qesco).
Punjab: Rs38.01 billion, with Lahore Electric Supply Company (Lesco) most affected at Rs17.27 billion, followed by Multan Electric Power Company (Mepco) at Rs9.9 billion.
Khyber Pakhtunkhwa: Rs8.88 billion, including Rs6.75 billion owed to Peshawar Electric Supply Company (Pesco) and Rs2.3 billion to Tribal Electric Supply Company (Tesco).
The minister warned that failure to resolve this issue could further destabilize the energy sector and hinder economic growth.

Story by Khaleeq Kiani

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