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ISLAMABAD: Federal Minister for Power Sardar Awais Ahmad Khan Leghari told the National Assembly on Monday that electricity tariffs for households consuming up to 200 units per month have been reduced by approximately 60 percent over the past nine months.
Responding during Question Hour to MNA Naeema Kishwar Khan’s inquiry, the minister said the reduction was part of the government’s efforts to ease the burden on low-income households amid rising inflation.
Subsidies Benefiting Nearly Half of Power Consumers
Leghari highlighted that of Pakistan’s roughly 35 million electricity users, about 18.3 million—over half the total—are already receiving subsidies. Consumers using up to 100 units a month get a 90% subsidy, while those using between 100 and 200 units receive around 70% relief.
“These subsidies are targeted to ensure that the poorest households remain protected from rising energy costs,” he explained, adding that the government has prioritized low-consumption consumers in its policy framework.
Expansion to 300 Units Not Financially Feasible
The minister clarified that extending the subsidized slab to households consuming up to 300 units a month is currently not feasible. “Such an expansion would require an additional Rs. 275 billion in subsidies, which the current financial circumstances simply do not allow,” he said.
Despite these limitations, Leghari stressed that the government continues to shoulder a heavy subsidy burden to protect vulnerable households. He also pointed out that Pakistan’s fiscal space remains constrained due to commitments with international financial institutions, including the IMF, which limits the scope for further subsidies.
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No Subsidized Power for Cryptocurrency Mining
In response to a question from MNA Iftikhar Baig, Leghari categorically denied that any subsidized electricity had been provided for cryptocurrency mining operations in Pakistan.
He said, “No tariff, rate, or legal framework for crypto-related ventures has been approved.” The minister clarified that, to date, the government has not allocated any electricity or special concessions for such projects, as they do not align with the country’s energy priorities.
Incremental Electricity Package for Industry
While subsidies remain focused on low-consumption households, Leghari said the government has rolled out an incremental electricity package for the industrial sector. This package, however, is provided without any subsidies.
The aim, he explained, is to boost the competitiveness of industries—particularly export-oriented sectors—by encouraging them to consume more electricity from the national grid instead of relying on expensive alternatives such as captive generation from gas or diesel.
7,500 MW of Surplus Power Available
Leghari noted that Pakistan currently has around 7,500 megawatts of surplus electricity available. Talks are ongoing with development partners and the IMF to explore how this additional capacity can be utilized more effectively to improve grid stability and efficiency.
“Our focus is on enhancing the transmission network and ensuring that this excess capacity can be used to benefit both industrial and domestic consumers in the long run,” he said.
Balancing Relief with Fiscal Responsibility
The minister acknowledged the difficult balance between providing relief to consumers and maintaining fiscal discipline. “We understand the need to shield the most vulnerable segments of society from high electricity costs, but we must also ensure the sustainability of our power sector,” Leghari said.
He added that while the government remains committed to offering targeted relief, it cannot risk jeopardizing the financial viability of the energy sector by overextending subsidies.
Broader Energy Sector Reforms
Leghari’s remarks come at a time when the government is implementing broader reforms in the power sector, including measures to reduce circular debt, improve bill recovery, and enhance the performance of distribution companies (DISCOs).
Officials say these reforms are essential to creating a more financially sustainable electricity sector, reducing dependency on government subsidies, and ensuring long-term energy security.
The minister also highlighted ongoing efforts to integrate renewable energy sources into the national grid, which could help reduce generation costs and dependence on imported fuels.
