Govt Confirms Electricity Subsidies Will Continue
Federal Minister for Power, Awais Ahmed Khan Leghari, has firmly dismissed reports suggesting that the government intends to withdraw electricity subsidies for protected consumers, assuring the public that eligible households will continue receiving financial relief.
Addressing a press conference in Islamabad on Sunday, the minister clarified that consumers using less than 200 units of electricity per month will remain entitled to subsidized rates. He emphasized that media reports claiming otherwise were inaccurate and misleading.
Leghari revealed that the number of protected consumers benefiting from electricity subsidies has grown significantly, surpassing 20 million users nationwide. To improve transparency and ensure assistance reaches deserving households, the government is introducing a new QR code-based verification and registration system.
Under the new mechanism, consumers will be required to provide their details through a streamlined registration process. The minister noted that the number of subsidy beneficiaries has increased from 9.5 million to 21.5 million over the past four years. Currently, around 29.57 million domestic consumers approximately 86 percent of all residential electricity users—are receiving some form of subsidy.
The power minister also ruled out any plans to impose additional taxes on electricity bills, stating that the government is not considering such measures.
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Power Sector Reforms Yielding Results
Highlighting recent achievements in the energy sector, Leghari said reforms have delivered substantial financial savings. Renegotiated agreements with independent power producers (IPPs) have reportedly saved the country Rs. 3.5 trillion, while improved performance by distribution companies has reduced losses by Rs. 193 billion.
He further claimed that circular debt in the power sector declined by Rs. 780 billion during the fiscal year 2024-25, attributing the improvement to ongoing structural reforms and better financial management.
According to the minister, these measures have helped lower electricity costs and provide direct relief to consumers.
Net Metering Policy Remains Intact
Responding to concerns about solar energy policies, Leghari rejected claims that the government is discouraging solar adoption. He clarified that net metering has not been abolished and that only certain billing procedures have been revised to improve transparency.
The minister stated that more than two million single-phase electricity consumers have already completed registration under the new system. He added that approximately 90 percent of domestic consumers will not be affected by the revised net billing policy.
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Easier Rules for Small Solar Projects
In a move aimed at promoting renewable energy, the government has removed licensing requirements for solar projects with a capacity of up to 25 kilowatts. Regulatory approvals for smaller installations have also been simplified.
Leghari said these changes are designed to support genuine consumers, encourage solar adoption, and ensure that government subsidies and energy sector reforms benefit those who need them most.
Final Words
Federal Minister for Power Awais Ahmed Khan Leghari reaffirmed that electricity subsidies for protected consumers will continue, dismissing reports of their withdrawal. Households consuming less than 200 units per month will remain eligible for subsidized rates, while a new QR code-based registration system will help ensure that support reaches deserving consumers more effectively.
The minister also highlighted significant progress in power sector reforms, including major financial savings, reduced circular debt, and simplified rules for small solar projects. He emphasized that net metering remains in place, no new taxes on electricity bills are being considered, and the government’s reforms are focused on lowering costs, promoting renewable energy, and providing relief to consumers across Pakistan.
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People’s Questions And Their Answer
1. Will the government end electricity subsidies for protected consumers?
No. The government has confirmed that consumers using less than 200 units per month will continue to receive subsidized electricity rates. Reports about ending these subsidies have been rejected as incorrect.
2. Who qualifies for the electricity subsidy in Pakistan?
Protected domestic consumers who use up to 200 electricity units per month remain eligible for financial relief. The government is also introducing a QR code-based verification system to improve transparency.
3. Is the government imposing new taxes on electricity bills?
No. The Power Minister has clearly stated that there are no plans to introduce additional taxes on electricity bills at this time.
4. Has Pakistan abolished net metering for solar users?
No. Net metering remains in place. The government has only revised certain billing procedures, and around 90% of domestic consumers are expected to remain unaffected.
5. What changes have been made for small solar projects?
The government has removed licensing requirements for solar systems up to 25 kilowatts and simplified approval procedures. These measures are intended to encourage greater adoption of solar energy.