Government not ending electricity subsidy for protected consumers, says Awais Leghari
Federal Minister for Energy Awais Leghari Sunday clarified that the government is not withdrawing electricity subsidies for protected consumers, dismissing reports suggesting otherwise as baseless and contrary to facts.
Addressing concerns regarding electricity subsidies, the minister said the number of protected consumers has increased significantly over the past four years, rising from 9.5 million to 21.5 million.
He noted that currently 29.57 million domestic consumers—around 86 percent of all residential electricity users—are benefiting from government subsidies.
Leghari stated that the volume of electricity subsidies has grown from Rs199 billion to Rs423 billion, while a total subsidy of Rs527 billion is being provided to the agricultural and domestic sectors. He added that the government will continue uninterrupted provision of subsidies to eligible consumers through a QR code-based verification system.
The minister said a new registration mechanism has been introduced to ensure that subsidies reach only deserving consumers. More than two million single-phase consumers have already completed the registration process.
Highlighting the government's efforts to reduce electricity costs, Leghari said claims regarding a reduction in power tariffs are accurate. He revealed that the review of Independent Power Producers (IPPs) agreements has generated savings of Rs3.5 trillion, while reductions in distribution company (DISCO) losses have saved Rs193 billion. Circular debt has also decreased by Rs780 billion during the fiscal year 2024-25.
According to the minister, the sale of unnecessary machinery and assets of power sector entities has resulted in additional savings of Rs47 billion. He said ongoing reforms have significantly lowered electricity generation costs and are producing positive results across the energy sector.
Leghari maintained that power sector reforms have provided direct relief to consumers, while reducing the overall subsidy burden on the national exchequer. He added that the burden of cross-subsidies on industrial consumers has also been reduced.
Providing details of tariff reductions, the minister said electricity prices have declined for all consumer categories between March 2024 and May 2026. Rates for protected consumers have fallen by 31 percent, while domestic consumers have received 16 percent relief.
Industrial consumers have benefited from a 33 percent reduction in tariffs, commercial consumers from an 8 percent decrease, and agricultural consumers from a 14 percent cut in electricity rates.
He further stated that electricity tariffs in Azad Jammu and Kashmir have declined by 45 percent, while bulk consumers have received a 13 percent reduction. On average, electricity prices across the country have decreased by 20 percent.
Discussing Pakistan’s energy future, Leghari said reliance on local energy resources is steadily increasing. He projected that by 2035, clean energy would account for 90 percent of the national energy mix, compared to the current 55 percent. During the same period, electricity generation from local resources is expected to rise from 74 percent to 96 percent.
The minister noted that renewable energy currently constitutes 57 percent of Pakistan’s energy portfolio, compared to up to 48 percent in India.
Addressing concerns about solar energy policies, Leghari emphasized that the government is not discouraging solar power adoption but is instead making the system more transparent. He said the National Energy Plan includes 8 gigawatts of distributed solar energy and assured that 90 percent of domestic consumers will remain unaffected by the revised net billing policy.
“There is no major change for single-phase domestic solar consumers,” he said, adding that solarization projects are being implemented in Gilgit-Baltistan and Gwadar.
The licensing requirement for solar projects up to 25 kilowatts has been abolished, while the National Electric Power Regulatory Authority (NEPRA) has approved additional facilities for small-scale solar projects at the request of the Power Division.
Leghari said transparency in the net billing system has been enhanced through digitalization.
He clarified that net metering has not been abolished, and only reforms in the billing mechanism have been introduced to establish a balance between the interests of solar consumers and the broader consumer base.