ISLAMABAD: Federal Power Minister Sardar Awais Ahmad Khan Leghari revealed plans to submit a draft of Pakistan’s updated solar energy framework to the Economic Coordination Committee (ECC) in the near future. The initiative aims to incentivize rooftop solar adoption by setting a new rate for electricity fed back into the national grid at approximately Rs9.50 to Rs10 per unit. According to estimates, households and businesses installing these systems could recoup their initial costs within four to five years, positioning solar energy as a financially viable solution.
During an appearance on Geo News’ Naya Pakistan, Leghari clarified that existing rooftop solar agreements—which currently compensate users at Rs27 per unit—would remain unaffected to uphold contractual obligations. He warned that without policy adjustments, escalating net metering adoption could strain the power sector, potentially adding over Rs600 billion annually to consumer bills and raising tariffs by Rs5-6 per unit.
Addressing circular debt challenges, the minister noted that liabilities surged by Rs1,580 billion during the PTI’s tenure but were stabilized under the previous PDM-led administration and current government. Recent measures have limited the debt’s growth to Rs80 billion last fiscal year, with projections indicating a reduction in the coming months through improved DISCO management and lower interest rates.
Leghari highlighted progress in renegotiating terms with independent power producers (IPPs), resulting in Rs460 billion in waived late-payment surcharges. Further savings are anticipated as additional IPP agreements undergo revision. To address outstanding debt, the government plans to secure a Rs1,200 billion loan from commercial banks, repayable over five to six years using the existing Rs2.83 per unit surcharge on electricity bills. Once settled, this strategy aims to eliminate circular debt from the system.
Emphasizing affordability, the minister stated efforts to reduce tariffs and stimulate industrial electricity demand are underway, with Prime Minister Shehbaz Sharif spearheading related initiatives. Leghari also confirmed constructive discussions with the IMF, which has reportedly endorsed proposed power sector reforms and tax adjustments, signaling confidence in the government’s commitment to systemic overhauls.
The revised policy framework seeks to balance consumer incentives with fiscal sustainability, aligning with broader goals to revitalize Pakistan’s energy infrastructure and promote renewable adoption.
