SLAMABAD: Energy Minister Awais Leghari said on Sunday that the federal government is not ending electricity subsidies for protected consumers, dismissing rumours and assuring that eligible households will continue to receive financial support through a new QR-code-based registration system.
Subsidy Beneficiaries Increase
Leghari said the number of protected consumers has increased from 9.5 million to 21.5 million over the past four years, while nearly 29.6 million domestic consumers are currently benefiting from electricity subsidies. “The total subsidy bill has risen from Rs199 billion to Rs423 billion, with Rs527 billion being provided to domestic and agricultural consumers,” he added.
Savings from Reforms
Reflecting on the impact of power sector reforms, the minister said the government has saved Rs3.5 trillion through renegotiated agreements with independent power producers (IPPs), while reduced losses in distribution companies have generated an additional Rs193 billion in savings. Circular debt declined by Rs780 billion during fiscal year 2024-25, he added.
Tariff Reductions Across Categories
According to Leghari, electricity tariffs have fallen across all consumer categories since March 2024, including a 31 per cent reduction for protected consumers, 16 per cent for domestic users and 33 per cent for industrial consumers. National average electricity rates have declined by 20 per cent.
Solar Policy Clarification
The minister also defended the government’s solar energy policies, saying net metering has not been avoided and that recent reforms are aimed at improving transparency. He added that 90 per cent of domestic consumers would remain unaffected by changes to the net billing system, while small-scale solar projects continue to receive regulatory facilitation.
Future Energy Mix
Leghari said Pakistan is steadily increasing its reliance on domestic and renewable energy sources, with clean energy expected to account for 90 per cent of the country’s energy mix by 2035. He reiterated that subsidies for protected consumers would continue and that reports about their withdrawal are baseless.
The minister’s clarification comes amid growing public concern over potential subsidy cuts as the government pursues fiscal consolidation under the IMF programme. The new QR-code-based system is designed to ensure targeted delivery of subsidies to eligible households while reducing leakage and improving transparency. Officials have urged consumers to register their connections through designated portals to continue receiving benefits. The government has also reassured agricultural consumers that their subsidy support will remain intact under the reformed framework
