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BusinessLatest

Govt rejects reports of ending electricity subsidy for protected consumers

Managing Editor
Last updated: June 1, 2026 5:31 am
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Power Minister Awais Ahmad Khan Leghari addresses a press conference in Islamabad on May 31, 2026. — Screengrab via GeoNews
Power Minister Awais Ahmad Khan Leghari addresses a press conference in Islamabad on May 31, 2026. — Screengrab via GeoNews
  • Eligible users continue receiving subsidy through QR code system: minister.
  • QR code reforms aim to ensure subsidies reach deserving users: Leghari.
  • Power minister says net metering remains in place with billing reforms only.

Federal Minister for Power Awais Ahmed Khan Leghari on Sunday rejected reports that the government was planning to withdraw electricity subsidies for protected consumers, saying eligible users would continue to receive financial support through a new QR code-based system.

Addressing a press conference in Islamabad, Leghari said: “[The] government is not ending electricity subsidies for protected consumers,” adding that reports suggesting otherwise were “contrary to the facts”.

He said consumers using less than 200 units of electricity continued to receive subsidies and that the number of such consumers had now exceeded 20 million.

“Eligible consumers will continue to receive subsidies without interruption through the QR code system,” he said. The minister also ruled out any increase in taxes on electricity bills, stating that no such proposal was under consideration.

Leghari said the purpose of the reforms is to compile consumer data through the QR code system and ensure that subsidies reach deserving beneficiaries. He said consumers receiving subsidies were being asked to provide details through the registration process.

The power minister further said the number of electricity subsidy beneficiaries had increased from 9.5m to 21.5m over the past four years. Currently, around 29.57 million domestic consumers, or 86% of the total, are receiving subsidies.

Highlighting power sector reforms, the minister said renegotiation of agreements with independent power producers had resulted in savings of Rs3.5 trillion, while reductions in distribution company losses had saved Rs193bn. He added that circular debt fell by Rs780bn during fiscal year 2024-25.

The federal minister also defended the government’s claims regarding lower electricity prices and said reforms in the energy sector were producing positive results and providing direct relief to consumers.

On solar energy, Leghari said the government was not discouraging solar power adoption and was instead making the system more transparent. He said net metering had not been abolished and only billing procedures had been reformed.

“More than two million single-phase consumers have already completed registration,” he said, adding that 90% of domestic consumers would not be affected by the revised net billing policy.

He added that licensing requirements for solar projects of 25kW and below had been removed and regulatory approvals had been simplified for smaller projects.

‘Action taken’

The power minister said that disciplinary action had been taken against a Lahore Electric Supply Company (Lesco) line superintendent after Defence Minister Khawaja Asif raised concerns about alleged corruption.

In a post on X on Saturday, Asif said he had sought the assistance of a former official to help repair a transformer in the village of his domestic employee.

Addressing the presser today, Leghari referred to the minister’s post and said it reflected the government’s commitment to accountability.

“The tweet is a source of pride for us as we believe in self-accountability,” he said, adding that strict action had been taken against the concerned line superintendent following Asif’s complaint.



2026-05-31 17:55:00

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