Circular debt fell by PKR 780 billion during fiscal year 2024-25.
ISLAMABAD: Pakistan will continue providing electricity subsidies to protected consumers through a new registration-based system, Energy Minister Awais Leghari, dismissing reports that the government plans to withdraw support for low-income households.
Eligible households must verify their status using a QR code on their utility bills. More than 2 million single-phase consumers have already completed registration under the new process.
The number of protected consumers has grown to 21.5 million from 9.5 million over four years. Currently, 29.57 million domestic users, 86% of all residential consumers, receive subsidized tariffs.
The annual electricity subsidy bill has risen to PKR 423 billion from PKR 199 billion, Leghari said. Total subsidies to residential and agricultural consumers now amount to PKR 527 billion.
The announcement comes as broader power sector reforms have reduced tariffs and cut circular debt across the country. Renegotiated contracts with independent power producers saved PKR 3.5 trillion, while reduced losses at power distribution companies saved PKR 193 billion.
Circular debt fell by PKR 780 billion during fiscal year 2024-25, and the sale of surplus machinery at government-owned power generation companies generated an additional PKR 47 billion in savings.
Between March 2024 and May 2026, tariffs for protected consumers fell by 31%. Residential rates declined 16%, while industrial users saw a 33% reduction. Commercial consumers received an 8% cut, agricultural users a 14% decrease, and consumers in Gilgit-Baltistan and Azad Jammu and Kashmir benefited from a 45% reduction. Average electricity tariffs nationwide fell 20%.
The government also remains committed to expanding solar energy while improving transparency in the sector. The national energy plan includes 8 gigawatts of distributed solar generation capacity. Licensing requirements for solar projects of 25 kilowatts or less have been abolished, and the National Electric Power Regulatory Authority has approved measures to support small-scale solar development.
