ISLAMABAD, MAY 31: Federal Minister for Power Awais Ahmed Khan Leghari on Sunday rejected reports that the government was planning to withdraw electricity subsidies for protected consumers, saying eligible users would continue to receive financial support through a new QR code-based system.
Addressing a press conference in Islamabad, Leghari said: “[The] government is not ending electricity subsidies for protected consumers,” adding that reports suggesting otherwise were “contrary to the facts”.
He said consumers using less than 200 units of electricity continued to receive subsidies and that the number of such consumers had now exceeded 20 million.
“Eligible consumers will continue to receive subsidies without interruption through the QR code system,” he said. The minister also ruled out any increase in taxes on electricity bills, stating that no such proposal was under consideration.
Leghari said the purpose of the reforms is to compile consumer data through the QR code system and ensure that subsidies reach deserving beneficiaries. He said consumers receiving subsidies were being asked to provide details through the registration process.
The power minister further said the number of electricity subsidy beneficiaries had increased from 9.5m to 21.5m over the past four years. Currently, around 29.57 million domestic consumers, or 86% of the total, are receiving subsidies.
Highlighting power sector reforms, the minister said renegotiation of agreements with independent power producers had resulted in savings of Rs3.5 trillion, while reductions in distribution company losses had saved Rs193bn. He added that circular debt fell by Rs780bn during fiscal year 2024-25.
The federal minister also defended the government’s claims regarding lower electricity prices and said reforms in the energy sector were producing positive results and providing direct relief to consumers.
On solar energy, Leghari said the government was not discouraging solar power adoption and was instead making the system more transparent. He said net metering had not been abolished and only billing procedures had been reformed.
“More than two million single-phase consumers have already completed registration,” he said, adding that 90% of domestic consumers would not be affected by the revised net billing policy.
He added that licensing requirements for solar projects of 25kW and below had been removed and regulatory approvals had been simplified for smaller projects.
