Pakistan’s power distribution companies have sustained unimaginable losses estimated at Rs87 billion this year alone due to rampant electricity theft, a cost that is ultimately transferred to law-abiding consumers and small businesses, specialists revealed during a recent webinar.
During the session on the economic impact and safety hazards of electricity pilferage, organised by safety-focused entity Mehfooz Pakistan, experts called for systemic enforcement and a holistic approach to combat what they termed a national crisis, according to a statement issued today. The discussion was hosted by journalist Zarar Khuhro.
Energy and economic analyst Osama Rizvi highlighted that leakages in Pakistan’s economy amount to an estimated $12 billion annually, with the power sector representing the largest share of these financial losses. He stressed the practice is unsustainable for an economy where nearly a quarter of the import bill is for energy payments.
The participants noted that the issue is rooted in a deep-seated moral crisis where criminal behaviour, including illegal connections, cable theft, and damage to transformers, has become normalised. Rizvi warned that this widespread wrongdoing discourages investment and undermines efforts to create a business-friendly environment.
Ahtasam Ahmed, an Energy Expert at Renewables First, explained the need to better understand the energy market. He pointed out that while tariffs are determined on the basis of full cost recovery, state-owned power companies continue to suffer massive losses from theft, which are consequently borne by the general populace.
The experts pointed to the e-challan system for traffic violations as a successful example of how consistent and effective law enforcement can deter wrongdoing.
In response, Rizvi called for a holistic policy framework supported by sustained crackdowns. He also urged communities to take responsibility and contribute to building a strong public narrative against the trivialisation of electricity pilferage.