Unchecked Power Theft Costs Pakistan Billions

Fakhar e Alam

Peshawar: Amidst the nation’s efforts to navigate economic challenges, power pilferage remains a persistent issue, costing the national exchequer billions and hindering industrial, agricultural, and economic growth.

Over the years, Pakistan has faced substantial economic losses due to power theft, largely attributed to the poor enforcement of policies and corruption within power supply companies. The losses, estimated in billions of rupees, continue to undermine efforts to stabilize the country’s economy.

Professor Dr Zilakat Malik, former Chairman of the Economics Department at the University of Peshawar, highlights the widespread use of direct connections, commonly referred to as kunda hooks, as a major source of electricity theft.

He estimates that the losses, particularly in Khyber Pakhtunkhwa (KP) and the tribal areas, amount to approximately Rs137 billion annually.

Dr Malik also points to the involvement of power distribution company employees, who, in some cases, accept bribes to install fake meters, further exacerbating the problem.

He believes that the power pilferage gap not only widens the electricity demand-supply deficit but also negatively impacts the economy, affecting sectors such as agriculture, industry, and healthcare.

The recurring increases in power tariffs and a failure to construct new dams or powerhouses have placed additional pressure on honest consumers, who often have to bear the brunt of the losses caused by electricity thieves.

Dr Malik argues that poor policy implementation and the lack of strict action against violators are key issues.

Kunda Mafia

The kunda mafia, often backed by influential tribal leaders, politicians, and government officials, operates with impunity. Power supply companies’ employees are frequently threatened when attempting to remove illegal connections.

A spokesman for the Tribal Electricity Supply Company (TESCO) noted that consumers in merged tribal areas draw around 180 MW of electricity from express transmission lines. Any power usage above this figure is considered stolen. The prevalence of non-metering and direct hooks has overloaded the distribution system, causing frequent power fluctuations and outages.

Crackdown on Power Theft

Usman Saleem, a spokesman for the Peshawar Electricity Supply Company (PESCO), detailed a grand operation launched in September last year to combat electricity theft.

To date, Rs594.6 million has been recovered from defaulters and power thieves out of a total charged amount of Rs2.76 billion. PESCO removed more than 87,000 illegal connections, registered cases against 36,583 individuals, and arrested over 10,000 culprits.

The crackdown has also extended to PESCO employees, with 57 staff members facing action, including 24 who were arrested for aiding electricity thieves. PESCO has also introduced ABC cables and AMR digital meters in Peshawar, Mardan, and Swat districts to curb theft.

Legal Consequences

Efforts to combat power theft include the installation of new technology and the formation of task forces and enforcement committees at the district and tehsil levels. Under current laws, electricity thieves face penalties of three to seven years of rigorous imprisonment, fines up to Rs10 million, or both.

While some areas have seen improvements—650 out of 1,315 feeders in KP are now load shedding-free—PESCO emphasizes the need for cooperation from politicians, religious leaders, the media, and local communities to address the issue of power theft comprehensively.