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Govt not ending electricity subsidies for protected consumers, says Awais Leghari

by Sub News
May 31, 2026
Govt not ending electricity subsidies for protected consumers, says Awais Leghari
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Islamabad, May 31, 2026: Federal Minister for Power Awais Ahmed Khan Leghari on Sunday dismissed reports suggesting that the government was planning to withdraw electricity subsidies for protected consumers, assuring that eligible users would continue to receive financial assistance through a newly introduced QR code-based system.

Addressing a press conference in Islamabad, the minister said claims regarding the discontinuation of subsidies were “contrary to the facts.”

“The government is not ending electricity subsidies for protected consumers,” Leghari said, emphasizing that consumers using less than 200 units of electricity per month would continue to benefit from subsidized tariffs.

According to the minister, the number of protected consumers has now exceeded 20 million, and all eligible households will continue to receive uninterrupted support under the new QR code registration mechanism.

“Eligible consumers will continue to receive subsidies without interruption through the QR code system,” he said, adding that the initiative aims to improve data collection and ensure that financial assistance reaches deserving beneficiaries.

Leghari also rejected speculation about new taxes on electricity bills, stating that no proposal to increase taxation on power consumers was under consideration.

Highlighting the expansion of the subsidy programme, the minister said the number of beneficiaries had increased from 9.5 million to 21.5 million over the past four years. He noted that approximately 29.57 million domestic consumers — representing 86 percent of the total consumer base — are currently receiving electricity subsidies.

The power minister further outlined key achievements in the government’s energy sector reform agenda. He said renegotiated agreements with independent power producers (IPPs) had generated savings of Rs3.5 trillion, while reductions in electricity distribution company losses had saved an additional Rs193 billion.

He added that circular debt in the power sector declined by Rs780 billion during the 2024-25 fiscal year, describing the development as a major step toward financial sustainability.

Defending the government’s claims of reduced electricity costs, Leghari said ongoing reforms were producing tangible results and providing direct relief to consumers across the country.

On the issue of solar energy, the minister reiterated that the government remained committed to promoting renewable energy and was not discouraging the adoption of solar power.

“Net metering has not been abolished; only the billing procedure has been reformed to make the system more transparent,” he said.

Leghari revealed that more than two million single-phase electricity consumers had already completed registration under the new system. He maintained that around 90 percent of domestic consumers would remain unaffected by the revised net billing policy.

The minister also announced that licensing requirements for solar energy projects of up to 25 kilowatts had been abolished, while regulatory approvals for small-scale solar installations had been significantly simplified to encourage greater adoption of clean energy solutions.

Tags: electricity subsidiesFederal Minister for PowerIndependent Power ProducersIPPsIslamabadPakistanPower DivisionQR code-based systemSardar Awais Leghari
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