Earlier quoted context omitted.
I'm guessing: fewer people buying from the power companies/grid => the fixed costs of these companies are pushed onto the poorer customers, who already couldn't afford much.
This is correct. But there is a bit more. Almost all power plants in Pakistan are built with state-backed dollar-denominated loans (reason govt incompetence+corruption). This means if grid demand goes down, power plants don't go out of business like they would in a market based system. Instead, they keep collecting dollar-denominated interest paid by the state, even if they produce zero power. The state mitigates thi…
Power companies in Pakistan also don't have easy access to international money markets, and thus, it makes sense for the government to back those strong currency loans as a subsidy on infrastructure.
This is not exclusive to Pakistan, this is the routine of infrastructure financing on developing countries. J.P. Morgan is not really eager to lend money for PakiPower Incorporated, but it is willing to lend to the government.