Federal Minister for Energy Owais Leghari has reaffirmed that the government has no plans to withdraw electricity subsidies for eligible consumers, dismissing reports suggesting otherwise as inaccurate and misleading.
Speaking about the government’s latest initiatives, the minister said a new QR code-based system is being introduced to enhance transparency and ensure that subsidies are directed only to deserving consumers.
He explained that basic consumer information is being collected and digitised to improve record-keeping and verify eligibility more effectively.
Leghari clarified that households consuming fewer than 200 units of electricity per month will continue to receive subsidised tariffs. He noted that more than 20 million domestic consumers currently benefit from this support and that the government remains committed to protecting low-income households from rising energy costs.
According to the minister, the number of subsidy beneficiaries has increased significantly over the past four years, rising from 9.5 million to approximately 21.5 million consumers. He added that around 29.5 million domestic electricity users currently receive some form of subsidy, representing nearly 86 per cent of all residential consumers.
Highlighting progress in the power sector, Leghari said reforms have generated substantial financial savings. Renegotiation of agreements with Independent Power Producers (IPPs) has reportedly saved around Rs3.5 trillion, while improvements in distribution company performance have reduced losses by a further Rs193 billion. He also pointed to a reduction of Rs780 billion in circular debt during the 2024–25 fiscal year.
The minister maintained that ongoing reforms are helping to reduce electricity costs and deliver direct relief to consumers. He said the government’s measures are producing positive results and contributing to greater efficiency across the energy sector.
Addressing concerns regarding solar energy, Leghari stressed that the government is not discouraging the adoption of solar power. Instead, he said reforms are aimed at making the system more transparent and efficient.
He clarified that net metering has not been abolished, with changes limited to billing procedures designed to improve accuracy and accountability.
He further revealed that more than two million single-phase consumers have already completed registration under the updated framework.
The minister added that approximately 90 per cent of household consumers will remain unaffected by the new policy measures. In addition, licensing requirements for solar installations of up to 25 kilowatts have been removed, while regulatory procedures for smaller solar projects have been simplified to encourage further investment in renewable energy.
