Federal Minister for Power Awais Ahmed Khan Leghari on Sunday dismissed reports claiming that the government plans to withdraw electricity subsidies for protected consumers, assuring that eligible households will continue to receive financial assistance through a new QR code-based verification system.
Speaking at a press conference in Islamabad, Leghari said the government has no intention of ending electricity subsidies for protected consumers and described reports suggesting otherwise as inaccurate and misleading.
The minister stated that consumers using less than 200 units of electricity per month will remain eligible for subsidized rates. He noted that the number of protected consumers has now surpassed 20 million nationwide.
“Eligible consumers will continue to receive subsidies without interruption through the QR code system,” Leghari said. He also clarified that the government is not considering any increase in taxes on electricity bills.
According to the minister, the QR code initiative is aimed at improving consumer data collection and ensuring that subsidies reach deserving beneficiaries. Consumers receiving subsidies are being asked to register and provide the necessary information through the new system.
Leghari revealed that the number of subsidy beneficiaries has grown from 9.5 million to 21.5 million over the past four years. Currently, approximately 29.57 million domestic consumers—representing 86 percent of the total customer base—are benefiting from electricity subsidies.
Highlighting reforms in the power sector, the minister said the renegotiation of agreements with independent power producers (IPPs) has generated savings of Rs3.5 trillion. He added that reductions in power distribution company losses have saved Rs193 billion, while circular debt declined by Rs780 billion during the fiscal year 2024-25.
Defending the government’s claims of lower electricity costs, Leghari said ongoing reforms in the energy sector are delivering positive outcomes and providing direct relief to consumers.
Addressing concerns about solar energy, the minister said the government is not discouraging solar adoption but is working to make the system more transparent. He emphasized that net metering remains in place and that only billing procedures have been revised.
More than two million single-phase consumers have already completed registration under the new framework, he said, adding that 90 percent of domestic consumers will not be affected by the updated net billing policy.
Leghari further announced that licensing requirements for solar projects of up to 25 kilowatts have been removed, while regulatory approvals for small-scale solar installations have been simplified.
