PM Orders Action Against DISCOs Over EMO Violations

ISLAMABAD, May 6, 2026: Prime Minister Shehbaz Sharif on Tuesday ordered strict action against electricity distribution companies (DISCOs) for violating the Economic Merit Order (EMO), while reaffirming the government’s commitment to reducing reliance on imported fuel and eliminating power theft.

Chairing a high-level meeting on power sector reforms, the prime minister stressed the urgent need for a comprehensive strategy to meet the country’s growing energy demands through renewable sources.

He highlighted that increasing electricity generation from hydropower, solar energy, and biogas would significantly reduce production costs and support sustainable economic growth.

“The development of renewable energy sources is essential for sustainable economic progress and reducing dependency on costly imported fuel,” the prime minister said.

Sharif directed authorities to take immediate departmental action against DISCOs involved in recent EMO violations. He also ordered the swift installation of smart meters on transformers in areas prone to electricity theft.

The prime minister further emphasized accelerating efforts to establish a competitive electricity market and instructed officials to fast-track the private sector’s delivery of 400 megawatts of electricity under the wheeling system in its first phase.

During the briefing, officials informed the meeting that electricity theft, non-payment, and transmission losses have declined significantly over the past two years due to improved enforcement measures.

They noted that transmission losses dropped from 18.3% in June 2024 to 15.3% in March 2026, while bill collection efficiency improved from 90% to 96.46% during the same period.

Officials also shared that the privatization process of three electricity distribution companies is underway, with the bidding phase expected to conclude by November 2026.

Additionally, smart meters have already been installed on 2,500 previously loss-making feeders.

The meeting was attended by Law and Justice Minister Azam Nazir Tarar, Economic Affairs Minister Ahad Cheema, Finance Minister Muhammad Aurangzeb, Petroleum Minister Ali Pervaiz Malik, Power Division Minister Awais Leghari, Adviser on Privatization Muhammad Ali, State Minister for Finance Bilal Azhar Kiani, and other senior officials.

The prime minister’s directives reflect the government’s broader efforts to modernize the power sector, improve efficiency, and promote renewable energy as a sustainable alternative to imported fuels.