Federal Minister for Power Awais Ahmed Khan Leghari has dismissed reports suggesting that the government plans to end the Electricity Subsidy for protected consumers.
Speaking at a press conference in Islamabad, the minister said claims about the withdrawal of subsidies were incorrect. He assured the public that consumers using less than 200 units of electricity per month would continue to receive support under the existing subsidy framework.
According to Leghari, the Electricity Subsidy remains an important relief measure for millions of households across Pakistan. He noted that the number of consumers benefiting from the subsidy has increased significantly in recent years.
The minister said more than 20 million protected consumers are currently eligible for subsidized electricity rates. He added that these consumers will continue receiving financial support through a new QR code-based verification system.
Under the new mechanism, eligible users will be asked to register and provide necessary information. Officials believe the system will improve transparency and ensure that the Electricity Subsidy reaches deserving households.
Leghari revealed that the number of subsidy beneficiaries has increased from 9.5 million to 21.5 million over the last four years. He further stated that around 29.57 million domestic consumers, representing approximately 86 percent of total residential users, are currently receiving subsidized electricity.
The minister also rejected speculation regarding new taxes on electricity bills. He clarified that the government is not considering any proposal to increase taxes on power consumers.
During the briefing, Leghari highlighted several reforms introduced in the power sector. He said renegotiated agreements with independent power producers resulted in savings of nearly Rs3.5 trillion. In addition, improved performance by distribution companies helped save another Rs193 billion.
He also stated that circular debt declined by Rs780 billion during the fiscal year 2024-25. According to the minister, these reforms are helping improve the financial health of the energy sector while providing relief to consumers.
Addressing concerns about solar energy, Leghari denied reports that the government intends to discourage solar adoption. He said net metering has not been abolished and that only certain billing procedures have been revised.
The minister added that more than two million single-phase consumers have already completed registration under the updated system. He emphasized that around 90 percent of domestic users would not be affected by the revised net billing policy.
Leghari also announced that licensing requirements for solar projects up to 25kW have been removed. Regulatory approvals for small-scale solar installations have also been simplified to encourage renewable energy adoption.
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The government maintains that these measures are designed to improve transparency, support genuine consumers, and ensure that energy sector reforms continue to benefit the public while protecting the Electricity Subsidy for eligible households.
