ISLAMABAD: Energy Minister Awais Leghari clarified on Sunday that the federal government will maintain electricity subsidies for protected consumers, dismissing circulating rumors about their withdrawal. He emphasized that eligible households will keep receiving financial assistance through a newly introduced QR-code-based registration system.
Leghari highlighted that the number of protected consumers has more than doubled over the past four years, rising from 9.5 million to 21.5 million. Currently, approximately 29.6 million domestic consumers benefit from electricity subsidies nationwide.
The minister noted that the total subsidy expenditure has increased significantly, from Rs199 billion to Rs423 billion, with Rs527 billion allocated to both domestic and agricultural consumers combined.
Discussing the outcomes of recent power sector reforms, Leghari revealed that the government has saved Rs3.5 trillion by renegotiating contracts with independent power producers (IPPs). Additionally, improved efficiency in distribution companies has resulted in further savings of Rs193 billion. Circular debt also saw a substantial reduction of Rs780 billion during the fiscal year 2024-25.
Since March 2024, electricity tariffs have decreased across all consumer categories. Protected consumers experienced a 31 percent reduction, domestic users saw a 16 percent drop, and industrial consumers benefited from a 33 percent cut. Overall, the national average electricity rate has fallen by 20 percent.
Leghari also defended the government’s approach to solar energy policies, affirming that net metering has not been neglected. He explained that recent reforms aim to enhance transparency within the system. Furthermore, 90 percent of domestic consumers will remain unaffected by changes to the net billing framework, while small-scale solar projects continue to receive regulatory support.
Looking ahead, the minister stated that Pakistan is progressively increasing its dependence on domestic and renewable energy sources. He projected that clean energy will constitute 90 percent of the country’s energy mix by 2035.
In a significant development, Leghari reiterated that subsidies for protected consumers will persist, labeling any reports of their removal as unfounded.
