By Mushtaq Ghumman

Copyright brecorder

ISLAMABAD: The government has approached the International Monetary Fund (IMF) to seek approval for a special relief package in electricity bills for consumers affected by recent floods. The relief is expected to be formally announced by Prime Minister Shehbaz Sharif in the coming days.

On Wednesday, during a briefing to the National Assembly Standing Committee on Power, Secretary Power Dr Fakhray Alam Irfan stated that the IMF demands detailed information on every proposal before making a decision.

In his televised address to the nation, Prime Minister Shehbaz Sharif has already announced a waiver on electricity bills for flood-affected consumers for the month of August 2025. Surveys are currently under way to assess potential relief for commercial and industrial power users in the affected areas.

August electricity bills waived for flood-hit areas: Awais Leghari

“We have sought the IMF’s approval for relief in electricity bills for consumers impacted by the floods who are unable to pay,” said the Secretary. “An official announcement will be made in the next few days.”

The Power Planning and Monitoring Company (PPMC), a technical arm of the Power Division responsible for coordination with power distribution companies (Discos), has prepared and shared estimates of system and consumer losses for onward submission to the IMF.

However, Secretary Power disagreed with a proposal by MNA Nauseen Iftikhar to allow vulnerable consumers to pay their bills in instalments. “If a consumer has an outstanding bill of Rs 30,000, it likely means they haven’t paid their bills for nearly a year,” he explained.

He noted that there are a total of 33 million electricity consumers in the country, of which lifeline and protected consumers account for 180 million units of electricity consumption. These categories already receive government subsidies and are also being cross-subsidised by other consumers.

In response to a question, the Secretary said that the IMF had allowed for power sector losses of Rs 640 billion in FY 2024-25, while actual losses were Rs 397 billion. He added that both the IMF and the Prime Minister have acknowledged improvements in the power sector’s performance. For FY 2025-26, the loss target has been set at Rs 540 billion.

Regarding complaints of unscheduled load shedding from MNAs representing Sindh, the Secretary instructed Disco representatives to obtain Nepra’s approval for their load shedding plans. This, he said, would ensure that paying consumers continue to receive uninterrupted power supply. He also revealed that the recovery rates of both concerned Discos are 50 percent below target.

MNAs clarified that their concerns were not with the CEOs or officials of the power companies, but with deficiencies in infrastructure that were causing unscheduled load shedding and other service issues.

Secretary Power further stated that both Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO) will be handed over to the private sector under long-term concessional agreements, though ownership will remain with the government. “In simple terms, both Discos will be ‘contracted out’ to the private sector, but the government will retain their ownership,” he clarified.

A representative from HESCO informed the Committee that meters are being installed on transformers to ensure that electricity supply is disconnected only for consumers who either fail to pay their bills or are found involved in electricity theft.

The Secretary, Power Division, apprised that HESCO and SEPCO had suffered losses of around Rs. 60 billion in one year due to non-recovery and technical issues. Other Members urged the Power Division and HESCO to focus on structural reforms rather than temporary measures.

The Secretary, Power Division informed the Committee that HESCO had submitted an investment plan to NEPRA in November 2024. The plan aimed to strengthen feeders and improve the transmission system.

The Committee directed that NEPRA be invited in the next meeting to clarify its position on the investment plan and related regulatory approvals. The Secretary, Power Division, suggested that the investment plan be reviewed and resubmitted to NEPRA so that its feedback on progress and shortcomings could be shared with the Committee in the next meeting.

He further proposed that issues related to HESCO and SEPCO be addressed in a detailed meeting at his office once the floodwater situation improved, within 10–12 days, with participation of the concerned CEOs. If satisfactory progress was shown, the matter could be settled; otherwise, a clear report would be demanded. The Committee agreed with this suggestion and directed that the CEO, SEPCO, also be summoned in the next meeting.

The Committee was briefed by the General Manager, PPMC (Power Planning & Monitoring Company), on postings and transfers of employees from GENCO, Jamshoro, to various DISCOs. It was also explained by Secretary, Power Division that about 3,000 employees were being accommodated based on domicile preferences where possible.

However, grievances had arisen in cases where employees were posted far from their home regions or adjusted against lower-scale posts despite protection of their salary and grade.

Some employees, including school staff, also faced difficulties in placement. Members stressed that errors in HR lists and reductions in scale against qualifications amounted to serious irregularities and demanded inquiries into such cases.

The Committee emphasized that employees should, as far as possible, be adjusted within their home regions, and that proper mechanisms should be developed to address grievances. Syed Waseem Hussain, MNA raised concerns that employees were being posted in lower grades without due consideration of their qualifications and without being given any choice in postings.

He further pointed out that both HESCO and SEPCO were facing staff shortages and suggested that authority for appointments be provided to them.

The CEO, LESCO, also briefed the Committee. Rana Muhammad Hayat Khan, MNA, stressed that over-billing by LESCO must be eliminated. He further pointed out those projects such as feeders initiated two years ago remain incomplete, causing public frustration.

While acknowledging the hard work of the CEO, he urged further improvements. He also highlighted that the recent floods had aggravated the situation by destroying major crops such as rice and sugarcane, which take months to mature.

Although the Honourable Prime Minister had generously waived one month’s electricity bill, he proposed that at least six months’ bills be reduced by half, with the remaining half deferred for a year, to provide relief to farmers. He also called for interest-free loans and financial assistance for landlords to ensure agricultural stability and food security.

The meeting was attended by Sheikh Aftab Ahmed, Syeda Nosheen Iftikhar, Rana Muhammad Hayat Khan, Muhammad Shaharyar Khan Mahar, Nauman Islam Shaikh, Syed Waseem Hussain, and Sanjay Perwani, MNAs. Senior officers from the Power Division, along with representatives from HESCO, SEPCO, PESCO, LESCO, IESCO, JPCL and PPMC, were also present.

Copyright Business Recorder, 2025