Federal Minister for Energy Owais Leghari has firmly rejected reports claiming that the government plans to end electricity subsidies for protected consumers, describing such claims as misleading and contrary to facts.
He assured citizens that financial support for eligible households will continue under the government’s ongoing power sector reform agenda.
Electricity Subsidies to Continue for Protected Consumers
Speaking about recent reforms in Pakistan’s energy sector, Leghari emphasized that the number of protected electricity consumers has grown significantly over the past four years.
According to him, the figure has increased from 9.5 million to 21.5 million consumers, reflecting the government’s commitment to supporting lower-income households.
He revealed that nearly 29.57 million domestic consumers—around 86 percent of the total residential consumer base—are currently benefiting from subsidized electricity tariffs.
The government has also expanded its subsidy spending, increasing allocations from Rs199 billion to Rs423 billion, while a combined Rs527 billion subsidy is being provided to domestic and agricultural consumers.
Registration System Ensures Fair Distribution
Leghari highlighted that a QR code-based mechanism has been introduced to ensure subsidies reach deserving consumers without interruption. More than two million single-phase electricity users have already completed the registration process.
He explained that the registration system aims to improve transparency and prevent misuse, ensuring that only eligible households receive financial support. The minister reiterated that reports suggesting the end of subsidies are inaccurate, while government claims regarding reductions in electricity prices are based on facts.
Power Sector Reforms Deliver Major Savings
The energy minister pointed to substantial financial gains achieved through reforms. He stated that renegotiations with Independent Power Producers (IPPs) have generated savings of Rs3.5 trillion.
Additionally, reductions in distribution company losses have saved Rs193 billion, while circular debt declined by Rs780 billion during fiscal year 2024-25.
Further savings of Rs47 billion were achieved through the sale of surplus machinery, contributing to lower power generation and distribution costs.
Consumers across multiple categories have witnessed tariff reductions between March 2024 and May 2026.
Protected consumers received a 31 percent reduction, domestic users benefited from a 16 percent cut, while industrial electricity rates dropped by 33 percent. Commercial tariffs declined by 8 percent and agricultural consumers received 14 percent relief.
Focus on Renewable Energy and Solar Expansion
Looking ahead, Leghari said Pakistan aims to increase the share of clean energy in its power mix from the current 55 percent to 90 percent by 2035.
Renewable energy already accounts for 57 percent of the country’s energy mix, while electricity generation from local resources is expected to rise sharply in the coming years.
He also clarified that net metering has not been abolished. Instead, reforms have been introduced to improve transparency and balance the interests of solar users and other electricity consumers.
Reaffirming the government’s position, the minister stressed that subsidies for protected consumers will remain in place and are not being withdrawn.
