Staff Report
ISLAMABAD: Federal Minister for Energy Owais Leghari has clarified that the government is not withdrawing electricity subsidies for protected consumers, dismissing reports suggesting otherwise as inaccurate and misleading.
Speaking on the government’s power sector reforms on Sunday, Leghari said the number of protected consumers has increased from 9.5 million to 21.5 million over the past four years. He added that approximately 29.57 million domestic consumers, representing 86 percent of the total, are currently receiving subsidized electricity.
The minister noted that the volume of electricity subsidies has risen from Rs 199 billion to Rs 423 billion, while a total subsidy of Rs 527 billion is being provided to the agricultural and domestic sectors.
He emphasized that eligible consumers will continue to receive uninterrupted subsidies through the QR code-based system.
Leghari said the government has introduced a registration mechanism to ensure that subsidies are directed only to deserving consumers.
More than two million single-phase consumers have already completed the registration process. He reiterated that reports about the discontinuation of subsidies are contrary to facts, while government claims regarding reductions in electricity prices are accurate.
Highlighting progress in the power sector, the minister said that the review of agreements with Independent Power Producers (IPPs) has generated savings of Rs3.5 trillion.
Additionally, reductions in losses incurred by power distribution companies (DISCOs) have saved Rs193 billion, while circular debt declined by Rs780 billion during fiscal year 2024-25.
He further said that the sale of surplus machinery of JNCs has saved Rs 47 billion. According to Leghari, ongoing reforms have significantly lowered electricity generation and distribution costs, with positive outcomes increasingly evident across the energy sector.
The minister maintained that power sector reforms have provided direct relief to consumers. He said that reducing subsidy allocations in the budget has eased pressure on the national exchequer, while the burden of cross-subsidies on industrial consumers has also been reduced.
Providing details on tariff reductions, Leghari said electricity prices have declined across all consumer categories between March 2024 and May 2026. Tariffs for protected consumers have fallen by 31 percent, while domestic consumers have benefited from a 16 percent reduction. Industrial electricity rates have decreased by 33 percent, commercial tariffs by 8 percent, and agricultural consumers have received 14 percent relief. Consumers in Azad Jammu and Kashmir have seen electricity rates decline by 45 percent, he said.
He added that tariffs for bulk consumers have been reduced by 13 percent, while the average electricity tariff nationwide has fallen by 20 percent. The minister attributed these reductions to reforms and an increasing reliance on domestic energy resources.
Discussing the country’s energy transition, Leghari said the share of clean energy in Pakistan’s power mix is expected to reach 90 percent by 2035, compared to the current 55 percent. During the same period, electricity generation from local resources is projected to increase from 74 percent to 96 percent. He noted that renewable energy currently accounts for 57 percent of Pakistan’s energy mix.
Comparing regional trends, the minister said India’s renewable energy share stands at around 48 percent. He stressed that the government is not discouraging solar energy adoption but is instead introducing measures to improve transparency and efficiency within the system.
Leghari said the National Energy Plan includes 8 gigawatts (GW) of distributed solar energy. He added that the recently introduced net billing policy will not affect 90 percent of domestic consumers and that no major changes have been made for single-phase residential solar users.
The minister also highlighted ongoing solarization projects in Gilgit-Baltistan and Gwadar. He announced that licensing requirements for solar projects of 25 kilowatts (kW) or below have been abolished to facilitate greater adoption of renewable energy.
According to Leghari, the National Electric Power Regulatory Authority (NEPRA) has approved additional facilities for small-scale solar projects at the request of the Power Division. He said transparency has been enhanced through the digitization of the net billing system.
The minister clarified that net metering has not been abolished. Rather, reforms have been introduced to improve billing procedures and create a balanced framework that protects the interests of both solar consumers and other electricity users. Reaffirming the government’s commitment, Leghari said subsidies for protected consumers will continue and are not being eliminated.
