KARACHI: Pakistan's electricity consumers continue to pay for years of mismanagement and stalled reforms in the power sector, said Khurram Ijaz, Secretary General of the Businessmen Panel Progressive (BMPP) and former Vice President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI). According to Federation of Pakistan Chambers of Commerce and Industry, Khurram Ijaz cited the Auditor General of Pakistan's (AGP) Audit Report 2025-26, urging the federal government to review the Debt Service Surcharge (DSS). He argued that the Rs3.23-per-unit levy has become a tool for shifting the cost of institutional failure onto households and businesses.

"The audit lays bare an uncomfortable reality: instead of fixing the power sector, consumers are repeatedly being asked to pay for its failures," Ijaz said. He criticized the widening gap between the government's reform agenda and the sector's actual performance, noting that despite the National Electricity Policy and Plan promising improvements, the sector posted deficits averaging 2.8 percent of GDP between FY2014 and FY2024.

Ijaz highlighted the problematic reduction of circular debt from Rs2.39 trillion in June 2024 to Rs1.61 trillion by June 2025, attributing it to commercial borrowing and fiscal interventions rather than structural reforms. The audit also flagged significant transmission and distribution losses and poor recoveries by public sector distribution companies, underscoring unresolved financial crisis causes.

He further pointed out the imposition of the DSS on K-Electric consumers as unfair, given that the utility does not contribute to Pakistan's circular debt. According to the audit, actual transmission and distribution losses exceeded the approved benchmark, with theft and billing inaccuracies draining the sector's resources.

Ijaz also raised concerns about the ageing transmission network, which led to substantial capacity payments during FY2024-25. He emphasized the need for comprehensive reforms, including stronger governance, anti-theft enforcement, infrastructure upgrades, and private sector involvement.

Ijaz concluded by stressing the necessity of structural reforms to replace temporary fiscal measures, warning that without them, electricity users will continue bearing the financial burden of systemic inefficiencies.