Federal Minister for Power Awais Ahmed Khan Leghari has dismissed reports suggesting that the government plans to withdraw electricity subsidies for protected consumers, assuring that eligible users will continue receiving relief.
Speaking at a press conference in Islamabad, the minister said claims about ending subsidies for low-consumption households were inaccurate. He clarified that consumers using fewer than 200 units of electricity per month will remain eligible for government support.
According to Leghari, the number of protected consumers has now exceeded 20 million, reflecting the government’s continued commitment to supporting low-income households.
New QR Code System for Subsidy Distribution
The minister announced that the government is introducing a QR code-based verification system to improve the targeting of electricity subsidies.
Under the new mechanism, consumers will be required to register and provide their information to ensure that subsidies reach deserving households. Leghari said the initiative is designed to enhance transparency and improve the efficiency of the subsidy program.
He noted that the number of subsidy beneficiaries has increased significantly over the past four years, rising from 9.5 million to 21.5 million consumers.
Currently, around 29.57 million domestic consumers—representing nearly 86 percent of all residential electricity users—are benefiting from subsidized electricity rates.
No Additional Taxes on Electricity Bills
Addressing concerns about potential increases in electricity charges, the minister said the government is not considering any new taxes on electricity bills.
He emphasized that efforts remain focused on reducing financial pressure on consumers through reforms and improved sector performance.
Power Sector Reforms Yield Savings
Leghari highlighted several achievements in the power sector, claiming that recent reforms have generated substantial savings.
According to the minister, renegotiated agreements with independent power producers have resulted in savings of approximately Rs. 3.5 trillion. Improved performance and lower losses among electricity distribution companies have generated an additional Rs. 193 billion in savings.
He also stated that circular debt declined by Rs. 780 billion during fiscal year 2024-25, describing the development as a positive outcome of ongoing reforms.
Net Metering Policy Remains in Place
Responding to concerns from solar energy users, Leghari rejected claims that the government was discouraging solar adoption.
He clarified that net metering has not been abolished and that recent changes only relate to billing procedures aimed at improving transparency.
The minister said that more than two million single-phase consumers have already completed registration under the revised system and added that around 90 percent of domestic consumers would not be affected by the updated net billing policy.
Easier Rules for Small Solar Projects
To encourage renewable energy adoption, the government has removed licensing requirements for solar projects with capacities of up to 25 kilowatts.
Leghari said approval procedures for small-scale solar installations have also been simplified, making it easier for households and businesses to adopt solar energy solutions.
He added that these measures are intended to improve transparency, support genuine consumers, and ensure that subsidies and energy sector reforms deliver benefits to those who need them most.
