Shehbaz Lauds Cut in DISCO Losses

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Prime Minister Shehbaz Sharif on Tuesday commended the reported reduction of Rs193 billion in losses sustained by Pakistan’s power distribution companies, known as DISCOs. The development, which he called a major breakthrough, was highlighted during a session of the Cabinet Committee on Energy at the Prime Minister’s House. The prime minister stressed that the progress strengthens the long-term case for privatizing these state-run entities, something he referred to as an overdue reform.

The loss cut, according to officials, reflects improved governance and tighter operational oversight within the sector. For years, Pakistan’s DISCOs have suffered from chronic inefficiencies, including power theft, outdated infrastructure, and billing failures. The financial drain not only affected public finances but also hindered potential investor interest in the sector. Addressing the committee, Shehbaz said, “The reduction in losses marks a turning point for the energy sector, making the road to privatization smoother and more realistic.” His remarks were echoed in an official statement from the Prime Minister’s Office.

This achievement is being framed by the government as a prelude to deeper reforms, particularly the long-discussed but largely delayed process of privatization. While no timeline has yet been announced, the prime minister’s comments suggest a renewed political will to proceed with divesting government control over DISCOs. Analysts point out that while improved numbers are welcome, they must translate into a consistent framework that promotes investor confidence and long-term sustainability. Moreover, the effectiveness of these reforms will depend heavily on their execution beyond the political spotlight.

In conclusion, the Rs193 billion cut in DISCO losses stands as a rare moment of progress in an otherwise troubled power sector. While challenges remain, particularly around structural reforms and market deregulation, the prime minister’s remarks signal a shift in tone toward accountability and efficiency. If sustained, this could mark the beginning of a more commercially viable and investor-friendly environment for Pakistan’s energy sector, one that moves beyond subsidies and bailouts toward sustainable solutions rooted in market discipline.