Government Will Continue Electricity Subsidies For Protected Consumers, Says Leghari
- Energy Minister Owais Leghari says electricity subsidies for protected consumers are not being withdrawn.
- More than 29.5 million domestic consumers currently benefit from subsidized electricity, while subsidy allocations have increased to Rs527 billion.
- The government says power sector reforms have reduced tariffs, cut circular debt and accelerated the shift toward renewable energy.
Federal Minister for Energy Owais Leghari has dismissed reports suggesting that the government plans to end electricity subsidies for protected consumers, describing such claims as inaccurate and contrary to facts. He reiterated that eligible consumers will continue receiving subsidized electricity under the government’s ongoing power sector support programme.
Speaking about recent reforms in the energy sector, Leghari said the number of protected consumers has increased significantly over the past four years, rising from 9.5 million to 21.5 million. He added that around 29.57 million domestic consumers, representing approximately 86 percent of all residential electricity users, are currently benefiting from government subsidies.
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According to the minister, the volume of electricity subsidies has more than doubled, increasing from Rs199 billion to Rs423 billion. He noted that the total subsidy being provided to domestic and agricultural consumers currently stands at Rs527 billion.
Leghari said the government has introduced a QR code-based verification system and a registration mechanism to ensure that subsidies reach only deserving consumers. More than two million single-phase electricity consumers have already completed the registration process. He stressed that subsidies for eligible users will continue without interruption.
The minister highlighted several measures undertaken to improve the financial health of Pakistan’s power sector. He revealed that the review of agreements with Independent Power Producers (IPPs) has generated savings of approximately Rs3.5 trillion. In addition, efforts to reduce losses at power distribution companies (DISCOs) have resulted in savings of Rs193 billion, while circular debt declined by Rs780 billion during fiscal year 2024-25.
He further stated that the disposal of surplus machinery and assets within the power sector generated an additional Rs47 billion in savings. According to Leghari, these reforms have significantly reduced electricity generation and distribution costs and are producing visible benefits for consumers.
The minister said the reforms have also helped lower electricity tariffs across multiple consumer categories between March 2024 and May 2026. Protected consumers received a 31 percent reduction in tariffs, while domestic consumers benefited from a 16 percent decrease. Industrial electricity rates were reduced by 33 percent, commercial tariffs by 8 percent, and agricultural consumers received 14 percent relief. Electricity prices in Azad Jammu and Kashmir declined by 45 percent, while bulk consumers saw a 13 percent reduction. Overall, average electricity tariffs nationwide have fallen by around 20 percent, according to the minister.
Discussing Pakistan’s long-term energy strategy, Leghari said the country is steadily increasing its reliance on domestic and renewable energy sources. He projected that clean energy would account for 90 percent of Pakistan’s power mix by 2035, compared with the current 55 percent. During the same period, electricity generation from local resources is expected to rise from 74 percent to 96 percent. He added that renewable energy currently contributes around 57 percent to Pakistan’s energy mix.
Addressing concerns about solar energy policies, the minister emphasized that the government is not discouraging solar adoption. Instead, reforms are being introduced to improve transparency and efficiency. He said the National Energy Plan includes 8 gigawatts of distributed solar power and assured consumers that nearly 90 percent of domestic users will remain unaffected by the revised net billing policy. Single-phase residential solar consumers, he noted, will see no major changes.
Leghari also highlighted ongoing solarization projects in Gilgit-Baltistan and Gwadar. To encourage greater adoption of renewable energy, the government has abolished licensing requirements for solar projects up to 25 kilowatts. He added that the National Electric Power Regulatory Authority (NEPRA) has approved additional facilities for small-scale solar projects, while digitization has improved transparency in the net billing system.
Clarifying recent concerns, the minister said 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 the wider consumer base. Reaffirming the government’s position, Leghari said electricity subsidies for protected consumers will continue and are not being withdrawn.
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