ISLAMABAD: Federal Minister for Energy (Power Division) Awais Leghari has clarified that the government is not abolishing electricity subsidies for protected consumers, dismissing reports suggesting otherwise as misleading and contrary to facts.
Speaking on the government’s ongoing power sector reforms, the minister said that the number of protected consumers has increased significantly over the past four years, rising from 9.5 million to 21.5 million. Currently, around 29.57 million domestic consumers—representing nearly 86 percent of total household electricity users—are receiving subsidized electricity.
Leghari noted that the volume of electricity subsidies has grown from Rs199 billion to Rs423 billion, while a total of Rs527 billion in subsidies is being provided to domestic and agricultural consumers. He emphasized that an enhanced registration mechanism, supported by a QR code-based verification system, has been introduced to ensure uninterrupted subsidy provision to eligible consumers.
According to the minister, more than two million single-phase electricity consumers have already completed their registration. The new system is aimed at ensuring that subsidies reach only deserving beneficiaries while improving transparency and efficiency.
Highlighting the success of power sector reforms, Leghari said the government has achieved savings of approximately Rs3.5 trillion through the renegotiation of Independent Power Producer (IPP) agreements. Additional savings of Rs193 billion were realized through reductions in distribution company (DISCO) losses, while circular debt declined by Rs780 billion during fiscal year 2024-25.
He further stated that the sale of redundant generation company (GENCO) machinery resulted in savings of Rs47 billion. These reforms, he said, have significantly reduced electricity generation costs and delivered direct relief to consumers.
The minister claimed that electricity tariffs have declined across all consumer categories between March 2024 and May 2026. Protected consumers have witnessed a 31 percent reduction in electricity rates, while domestic consumers have received a 16 percent reduction. Industrial consumers benefited from a 33 percent tariff reduction, commercial consumers saw rates decline by 8 percent, and agricultural consumers received 14 percent relief.
Electricity tariffs in Azad Jammu and Kashmir have reportedly fallen by 45 percent, while bulk consumers have benefited from a 13 percent reduction. Overall, average electricity tariffs nationwide have declined by approximately 20 percent, he added.
Discussing Pakistan’s energy transition, Leghari said reliance on indigenous energy resources is steadily increasing. He projected that by 2035, clean energy will account for 90 percent of the national energy mix, compared to the current 55 percent. Similarly, electricity generation from local resources is expected to rise from 74 percent to 96 percent during the same period.
The minister also highlighted Pakistan’s renewable energy share, stating that it currently stands at 57 percent, compared to 48 percent in India.
Addressing concerns regarding solar energy policies, Leghari rejected claims that the government is discouraging solar adoption. He said the objective is to make the system more transparent and sustainable. Pakistan’s national energy plan includes 8 gigawatts of distributed solar power, and the proposed net billing policy will not affect 90 percent of domestic consumers.
He added that there are no major changes for single-phase household solar users, while solarization projects are actively being implemented in Gilgit-Baltistan and Gwadar. The licensing requirement for solar projects up to 25 kilowatts has been removed, and the National Electric Power Regulatory Authority (NEPRA) has approved additional facilitation measures for small-scale solar installations.
“Net metering has not been abolished,” Leghari said. “Only the billing mechanism has been reformed to improve transparency, protect solar consumers’ interests, and maintain a fair balance among all electricity users.”
Reiterating the government’s commitment, the minister concluded that subsidies for protected electricity consumers will continue, ensuring relief for low-income households while broader reforms strengthen the sustainability of Pakistan’s power sector.
