Protected consumers: Leghari says power subsidies not being withdrawn

ISLAMABAD: Federal Minister for Energy Awais Leghari on Sunday said that a new registration system is now live to ensure power subsidies target only eligible consumers, with roughly two million single-phase users already signed up.

Clarifying that the government is not withdrawing power subsidies for protected consumers, the minister said that uninterrupted provision of subsidies will continue to eligible consumers through a QR code-based verification system.

According to Leghari, power sector reforms are giving consumers direct relief while cutting down on government subsidy spending. He added that the burden of cross-subsidies on industrial consumers has also been lowered.

READ MORE: Govt will proceed ahead with planned power subsidy reform, IMF told

Over the past four years, the minister said that the number of protected consumers has more than doubled, surging from 9.5 million to 21.5 million.

Currently, 29.57 million domestic consumers—representing roughly 86 percent of all residential electricity users—receive government subsidies.

Power subsidies have swell from Rs199 billion to Rs423 billion, while a total subsidy of Rs527 billion is being provided to the agricultural and domestic sectors, he said.

He said ongoing reforms have significantly lowered electricity generation costs and are producing positive results across the energy sector.

Leghari revealed that the review of Independent Power Producers (IPPs) agreements has generated savings of Rs3.5 trillion, while reductions in losses of distribution company (DISCO) losses have further save Rs193 billion. Circular debt has also decreased by Rs780 billion during the fiscal year 2024-25. The sale of unnecessary machinery and assets of power sector entities has also resulted in additional savings of Rs47 billion.

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.

Outlining Pakistan’s energy future, Federal Minister Awais Leghari stated that reliance on domestic energy resources is steadily increasing. He projected that clean energy will account for 90 percent of the national energy mix by 2035, up from the current 55 percent. Over the same period, power generation from local resources is expected to climb from 74 percent to 96 percent. The minister noted that renewable energy currently makes up 57 percent of Pakistan’s portfolio, outstripping India’s 48 percent.

Addressing concerns over shifting solar policies, Leghari clarified that the government is not discouraging solar adoption, but rather introducing transparency. The National Energy Plan accounts for 8 gigawatts of distributed solar energy, and the minister 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 solarisation initiatives are already underway in Gilgit-Baltistan and Gwadar.

To further ease adoption, licensing requirements for solar projects up to 25 kilowatts have been abolished, and NEPRA has approved additional facilities for small-scale projects at the Power Division’s request. Leghari emphasised that the net billing system is being digitalised for greater transparency. He stressed that net metering is not being abolished; instead, billing reforms are being introduced to balance the interests of solar users with the broader consumer base.

Copyright Business Recorder, 2026