K-Electric has clarified that the ongoing power shutdown in Karachi’s Lines Area is the result of massive unpaid dues from defaulters, which have now exceeded Rs 4 billion. The utility stated that the supply was suspended after repeated non-payment, and residents have been urged to clear outstanding bills to restore regular service.
The power cut has continued for two consecutive days, prompting residents to stage demonstrations against the prolonged outage and water shortages. Protesters gathered in both the Lines Area and Khudadad Colony, where they blocked traffic near Lines Area Parking Plaza and Shahrah-e-Qaideen.
According to reports, some demonstrators threw stones at a K-Electric office and set fire to nearby trees, forcing police to arrive at the scene to control the situation and ease traffic congestion.
In its statement, K-Electric emphasized that timely payment of dues is directly linked to reducing or eliminating loadshedding in defaulting neighborhoods. The company maintains that non-payment disproportionately increases system stress and leads to higher losses across distribution networks.
The incident also comes at a time when the federal government is preparing for major reforms in the power sector. During a briefing to the National Assembly’s Standing Committee on Power, Power Division Secretary Dr. Fakhar Alam Irfan said Pakistan is set to open its electricity market starting January 2026.
Under the new policy, consumers using one megawatt or more will be able to choose their electricity supplier for the first time. Officials believe that competition among suppliers will promote efficiency and provide more transparency in pricing.
However, the power sector continues to struggle with circular debt, one of its largest structural issues. The secretary informed lawmakers that annual losses in 2024 amounted to Rs 600 billion but were reduced this year to Rs 397 billion. While these losses do not immediately affect household consumers, they ultimately accumulate into circular debt and are covered by the federal budget.
The Power Division also directed that feeders with losses of up to 20 percent should not be shut down, warning that such closures damage both consumers and government revenue.
The situation in Karachi highlights the wider challenge of balancing recovery of dues with uninterrupted power supply, especially in high-loss areas. As the country prepares to open its electricity market, policymakers are urging stricter payment compliance while also pushing for sector-wide reform.
