Federal Energy Minister Awais Leghari has clarified that the government is not ending electricity subsidies for protected consumers.
He said the ongoing reforms are designed to ensure fairness in subsidy distribution rather than reducing support for low-usage households.
Addressing a press conference in Islamabad, the energy minister said that consumers using up to 200 units of electricity will continue to receive subsidies.
He added that the purpose of introducing QR code-based registration is to make sure the subsidy system is more transparent and fair.
According to him, not only meter owners but also individuals paying electricity bills will be required to register under the system.
Growth in protected consumers
Awais Leghari said the number of protected consumers has increased significantly over the past four years, rising from 9.5 million to 21.5 million.
He further stated that the government has provided subsidies worth Rs527 billion during the same period.
Currently, around 29.57 million consumers—approximately 86 percent of total users—are receiving electricity subsidies, he added.
Savings through power sector reforms
The minister highlighted major financial gains achieved through reforms in the energy sector.
He said the review of Independent Power Producers (IPPs) agreements has saved Rs3.5 trillion for the national exchequer.
Additionally, Rs193 billion has been saved by reducing losses in Distribution Companies (DISCOs), he said.
He also noted that circular debt has been reduced significantly, with a decline of Rs780 billion recorded in the fiscal year 2024–25.
Outlining future energy plans, Awais Leghari said that 1,200 megawatts of nuclear power will be added to the national system.
He added that the government aims to increase the share of renewable energy to 90 percent by 2035.
The minister also stated that the government will gradually exit power purchase agreements in the future as part of long-term sector reforms.
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