K-Electric CEO Moonis Alvi calls for unified action against rampant electricity theft, citing deep-rooted challenges and urgent need for infrastructure investment.
Key Takeaways
1. Massive Electricity Theft: Karachi has between 400,000 to 600,000 illegal electricity connections, causing significant financial and operational strain on K-Electric.
2. Internal and External Challenges: KE struggles with internal corruption and difficulties in bill collection, especially in informal settlements.
3. Need for Collective Action: CEO Moonis Alvi calls for a unified effort from the government, law enforcement, and society to address the deep-rooted crisis and support infrastructure upgrades.
Karachi, Pakistan – Karachi is grappling with a severe electricity crisis, as K-Electric (KE) CEO Moonis Alvi revealed that the city harbors between 400,000 to 600,000 illegal electricity connections, commonly known as “kundas.” In a recent interview with a private news channel, Alvi emphasized that electricity theft has become a deeply entrenched problem, one that KE cannot tackle alone.
Alvi pointed out that the government, not KE, sets electricity tariffs, and the company lacks the authority and resources to provide free electricity—especially in neighborhoods where illegal connections reappear immediately after being disconnected. He highlighted that a staggering 87 percent of electricity is lost on just 150 feeders, particularly in areas such as Ibrahim Hyderi, where there is a prevailing expectation of free utilities.
The CEO acknowledged that KE’s distribution losses currently stand at 15 percent, a significant improvement from nearly 30 percent prior to privatization. However, he admitted that internal corruption persists, with some of KE’s 12,000 employees implicated in illegal activities. Collecting bills remains a major challenge in Karachi’s 900 informal settlements, where 300 feeders supply largely unregulated communities.
To address these persistent issues, KE has proposed a $2 billion investment plan aimed at upgrading poles, grids, and overall infrastructure. Despite these efforts, Alvi noted that foreign investors have yet to see any returns, with the company currently operating at a negative 1 percent margin.
The situation underscores the urgent need for a collaborative approach involving government authorities, law enforcement, and civil society to combat electricity theft and ensure reliable power for Karachi’s residents. For Pakistan, addressing these challenges is crucial not only for Karachi’s economic stability but also for the broader goal of sustainable energy management nationwide.
