Pakistan, April 23 -- Amid public outcry over expensive power and excessive loadshedding, the government on Wednesday announced that it had unearthed expensive power purchases by distribution companies (Discos) outside the national grid at exorbitant rates in violation of the economic merit order.

According to an official statement, the Discos were purchasing electricity from small power producers (SPPs) and captive power plants (CPPs) through bilateral contracts at higher rates than the national tariff, bypassing the national grid and the Independent System and Market Operator (ISMO).

It added that the names of the Discos and the quantum of power purchasing were not disclosed to allow an independent inquiry to take its course.

The sta...