Islamabad (GNP): Electricity subsidies for protected consumers will continue across Pakistan, Federal Minister for Energy Owais Leghari has clarified, rejecting reports suggesting any withdrawal of subsidies. He termed such claims misleading and inaccurate and reaffirmed that the government remains committed to providing uninterrupted relief to eligible electricity consumers under ongoing power sector reforms.
The minister said that electricity subsidies for protected consumers are not being withdrawn under any circumstances. He emphasized that the government’s priority is to ensure financial relief for low-income households while maintaining stability in the power sector. He added that recent media reports suggesting the end of subsidies are completely false and not based on facts.
Leghari explained that the subsidy system is being improved rather than removed, with a stronger focus on transparency and digital verification to ensure that only eligible consumers receive benefits.
The minister highlighted that the number of protected consumers has increased significantly in recent years. According to him, the number has risen from 9.5 million to 21.5 million over the past four years. He further stated that around 29.57 million domestic consumers, which represents nearly 86 percent of total electricity users, are currently benefiting from subsidized electricity.
He said this expansion reflects the government’s effort to provide broader relief to households across Pakistan and ensure affordable electricity access for a large portion of the population.
Leghari stated that electricity subsidy allocations have also increased significantly. He said subsidies have risen from Rs199 billion to Rs423 billion, while a total of Rs527 billion is currently being provided to the domestic and agricultural sectors.
He added that a QR code-based registration system has been introduced to ensure transparency and proper targeting of subsidies. According to him, more than two million single-phase consumers have already completed the registration process, which helps the government identify and support deserving households more effectively.
The minister said that major reforms in the power sector have led to significant financial improvements. He stated that the review of agreements with Independent Power Producers (IPPs) has generated savings of around Rs3.5 trillion.
He further added that losses in distribution companies (DISCOs) have been reduced, saving Rs193 billion, while circular debt has declined by Rs780 billion during fiscal year 2024–25. In addition, the sale of surplus machinery from JNCs has resulted in savings of Rs47 billion.
Leghari said these reforms have helped reduce inefficiencies in the system and strengthened the financial position of the energy sector.
The minister stated that electricity tariffs have declined across all consumer categories between March 2024 and May 2026 due to ongoing reforms. He said protected consumers have seen a 31 percent reduction in electricity prices, while domestic consumers have benefited from a 16 percent decrease.
He added that industrial tariffs have fallen by 33 percent, commercial tariffs by 8 percent, and agricultural consumers have received a 14 percent reduction. He further noted that consumers in Azad Jammu and Kashmir have experienced a 45 percent decrease in electricity rates, while the overall national average tariff has declined by 20 percent.
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Leghari said Pakistan is moving towards a cleaner energy future, with the share of clean energy expected to reach 90 percent by 2035 compared to the current 55 percent. He added that reliance on local energy resources is also increasing, with domestic generation projected to rise significantly in the coming years.
He stated that the government is actively promoting solar energy and has removed licensing requirements for small solar projects of up to 25 kilowatts to encourage wider adoption. He clarified that net metering has not been abolished but has been restructured to improve transparency and ensure system efficiency.
He also said that the National Electric Power Regulatory Authority (NEPRA) has approved additional facilities for small-scale solar projects, and digitization of the net billing system has further improved transparency in the sector.
Pakistan’s power sector has been undergoing continuous reforms aimed at reducing financial losses, improving efficiency, and providing relief to consumers. The government has repeatedly stated that electricity subsidies for protected consumers will continue as part of its broader policy to support low-income households while ensuring long-term sustainability of the energy system.
