Pakistan not ending electricity subsidies

Federal Minister for Energy Awais Leghari clarified that the government of Pakistan is not withdrawing electricity subsidies for protected consumers, dismissing reports as inaccurate. He stated that the number of protected consumers has significantly increased, and approximately 86% of domestic consumers currently receive subsidies. The government has introduced a QR code-based registration mechanism to ensure subsidies reach deserving consumers. Leghari also highlighted power sector reforms, including renegotiated agreements with Independent power producer leading to Rs3.5 trillion in savings, reductions in distribution company losses saving Rs193 billion, and a decrease in circular debt by Rs780 billion. He noted that electricity prices have declined across all consumer categories between March 2024 and May 2026, with an average nationwide reduction of 20%. Furthermore, Pakistan is increasing its reliance on local energy resources, projecting clean energy to account for 90% of the national energy mix by 2035. The government is also promoting solar energy adoption by abolishing licensing requirements for small projects and reforming net billing policies to enhance transparency without affecting most domestic consumers. The Pakistan — National Electric Power Regulatory Authority has approved additional facilities for small-scale solar projects.