Energy Minister says protected consumers will continue to receive subsidies under tariff reforms and reductions
Energy Minister Sardar Ayaz Leghari addresses a press conference. SCREENSHOT/File
Energy Minister Awais Ahmed Khan Leghari on Sunday dismissed reports suggesting electricity subsidies for protected consumers were being phased out, calling the claims inaccurate and misleading.
Leghari’s remarks come against the backdrop of reports last month that Pakistan had committed to the International Monetary Fund (IMF) to gradually end untargeted electricity subsidies for residential consumers and provide future support through the Benazir Income Support Program (BISP) as part of the conditions attached to a $1.2 billion climate support loan.
Addressing a press conference on the government’s power sector reforms, Leghari said the number of protected consumers had increased from 9.5 million to 21.5 million over the past four years.
“The government is not removing electricity subsidies for protected consumers,” he said, adding that around 29.57 million domestic consumers – representing 86 percent of the total – were currently receiving subsidized electricity.
Federal Energy Minister Owais Leghari has clarified that the government is not withdrawing electricity subsidies for protected consumers, dismissing reports suggesting otherwise as inaccurate and misleading.
More details: pic.twitter.com/BvYv0aJSzF– APP (@appcsocialmedia) May 31, 2026
The minister said the volume of electricity subsidies increased from Rs199 billion to Rs423 billion, while total subsidies worth Rs527 billion were provided to the agriculture and household sectors.
“Eligible consumers will continue to receive uninterrupted subsidies through the QR code-based system,” he said.
Leghari said the government had introduced a registration mechanism to ensure that subsidies went only to deserving consumers, adding that over two million consumers in a single phase had already completed the registration process.
He argued that reports about the cessation of subsidies were contrary to the facts, while the government’s claims about reducing electricity prices were accurate.
Learn more: Pakistan assures IMF to withdraw untargeted energy subsidies in January
Highlighting developments in the power sector, the minister said the review of agreements with independent power producers (IPPs) had generated savings of Rs 3.5 trillion.
He said reduction in losses incurred by power distribution companies (DISCOs) had saved Rs 193 billion, while circular debt had reduced by Rs 780 billion in the financial year 2024-25.
According to Leghari, the sale of surplus JNC machines had generated savings of Rs47b. He said ongoing reforms had significantly reduced electricity production and distribution costs, with positive results becoming increasingly visible in the energy sector.
The minister said the reforms had brought direct relief to consumers, while the reduction in budget subsidies had eased pressure on the exchequer. He added that the burden of cross-subsidies on industrial consumers had also been reduced.
Providing details on the tariff reductions, Leghari said electricity prices fell across all consumer categories between March 2024 and May 2026.
“Tariffs for protected consumers were reduced by 31%, while domestic consumers received a 16% reduction,” he said.
He added that industrial electricity tariffs had fallen by 33%, commercial tariffs by 8% and agricultural tariffs by 14%. Consumers in Azad Jammu and Kashmir saw electricity tariffs cut by 45%, while tariffs for large consumers were reduced by 13%.
According to the minister, the average electricity tariff across the country fell by 20%, which he attributed to reforms and greater dependence on domestic energy resources.
Discussing the country’s energy transition, Leghari said the share of clean energy in Pakistan’s energy mix is expected to increase from 55% currently to 90% by 2035.
Over the same period, electricity generation from local resources is expected to increase from 74% to 96%, while renewable energy currently accounts for 57% of the country’s energy mix, it said.
Comparing regional trends, the minister said India’s share of renewable energy stood at around 48 per cent. He stressed that the government was not discouraging the adoption of solar energy but was introducing measures to improve transparency and efficiency.
“The government is not discouraging the adoption of solar energy,” he said.
Read also: Fake links to electricity subsidies distributed online
Leghari said the National Energy Plan called for 8 gigawatts of distributed solar power and the recently introduced net metering policy would not affect 90 percent of domestic consumers.
“No major changes have been made for single-phase residential solar users,” he said.
The minister also highlighted solarization projects in Gilgit-Baltistan and Gwadar and announced that licensing requirements for solar projects of 25 kilowatts or less have been abolished to encourage wider adoption of renewable energy.
According to Leghari, the National Electric Power Regulatory Authority (NEPRA) has approved additional installations for small-scale solar projects at the request of the Power Division, while transparency has been enhanced through digitalization of the net metering system.
Learn more: IMF authorizes energy subsidies of 830 billion rupees
He also clarified that net metering had not been abolished.
“Reforms have been introduced to improve billing procedures and create a balanced framework that protects the interests of solar consumers and other electricity users,” he said.
Reaffirming the government’s position, the minister said subsidies to protected consumers would continue and were not being removed.
