PM orders urgent revamp of National Tariff Commission to boost performance

ISLAMABAD, JULY 10 (DNA):Prime Minister Shehbaz Sharif on Thursday directed the relevant authorities to carry out an urgent restructuring of the National Tariff Commission’s legal, administrative, and other institutional powers and responsibilities to enhance its effectiveness.

The prime minister, chairing a review meeting on the performance of the National Tariff Commission, instructed for third-party review of the NTC’s recent performance and remodelling the organisation on modern lines to meet the requirements of the new tariff regime effectively.

He said that the NTC should be cognisant of all ground realities related to domestic business, imports, exports, and markets. The automated and efficient research capabilities of the NTC can play a key role in resolving issues faced by domestic businesses, he added.

Prime Minister Shehbaz said that the government was committed to addressing the NTC’s training and resource deficiencies and aligning its operations with modern requirements.

He directed the immediate activation of the NTC’s Appellate Tribunal and also sought a briefing on the implementation of the given directives by next month.

The meeting was attended by federal ministers Dr Musadik Malik, Muhammad Aurangzeb, Ahad Khan Cheema, and Ali Pervez Malik, and relevant senior government officials.

Reduction in distribution losses

Federal Minister for Energy Owais Leghari, in a press conference, said that effective governance has enabled the government to reduce losses within the power distribution system.

He stated that the losses amounting to Rs591 billion last year have been brought down to Rs399 billion. “We had set a target to reduce losses by Rs100 billion,” said Leghari.

He added that last year, all distribution companies (DISCOs) failed to recover Rs315 billion, while electricity theft amounted to Rs276 billion.

According to the minister, in the fiscal year 2023–24, the distribution companies suffered losses of Rs591 billion. “We have ensured merit within the DISCOs,” Leghari said, adding that new boards were formed and reforms initiated on the prime minister’s instructions.

“In 2024–25, losses in distribution companies were reduced by Rs191 billion, bringing them down to Rs399 billion,” he noted. The minister also said that electricity theft is prevalent even in the industrial sector and that Rs60 billion worth of theft was prevented in Gujranwala alone.

“This year, our complete focus, besides recovery, is to curb electricity theft,” he said, stressing that the losses incurred by distribution companies must be presented before the public. “Had these losses not occurred, it would have been easier to reduce the country’s debt,” he remarked.

Leghari stated that the entire government and cabinet have expressed serious reservations on the issue. “The government has decided to fix the DISCOs with firm resolve,” he said. The boards of these companies were appointed based on independent thinking and strategic vision, and the Power Division has ended the culture of political recommendations within the DISCOs.

“For the first time in Pakistan’s history, bill recovery has reached 96%,” he claimed. Referring to theft alone, he said Rs276 billion worth of electricity was stolen last year, and the reduction in losses due to tackling theft amounts to Rs10–11 billion.