Electricity theft remains a major issue in Pakistan, with illegal connections, known locally as the “kunda system,” contributing to significant economic losses. According to reports, power theft accounts for approximately 20-30% of the total electricity generated in the country, causing a staggering loss of around Rs 600 billion annually. In some regions, up to 40% of power losses are attributed to theft, exacerbating the financial strain on the energy sector.
The consequences of electricity theft are far-reaching, especially in terms of load shedding and unreliable power supply. In urban areas, power outages can last for up to 12 hours daily, while rural areas often face even longer durations. The rampant theft not only leads to financial losses but also results in severe power shortages, negatively affecting households and businesses.
As a result, productivity decreases, operational costs rise, and the public suffers from unreliable electricity services. Electricity theft also perpetuates a culture of corruption and lawlessness, further undermining Pakistan’s energy infrastructure.
The recent revelation by Mehfooz Pakistan, a safety organization hat the country loses Rs 600 billion annually due to theft highlights the need for urgent reforms.
While law enforcement crackdowns are essential, they must be backed by stronger legal frameworks and penalties for offenders. Lahore Electric Supply Company (LESCO) reports around 149,275 cases of electricity theft annually, with daily theft of approximately 3 million units, translating to a total of 270 million units stolen over three months, valued at over Rs 16.2 billion. These widespread losses contribute to national economic setbacks.
A study by the Pakistan Institute of Development Economics (PIDE) estimates that power outages alone cost Pakistan 2-3% of its GDP each year. Addressing the issue requires a multifaceted approach, including advanced monitoring technologies, stricter penalties, and public awareness campaigns to reduce theft. Strengthening enforcement and improving governance within the energy sector are crucial to curbing illegal practices and ensuring a more sustainable and reliable electricity supply across Pakistan.
