Power Minister Rules Out Electricity Tax Hikes Amid Sector Reforms
ISLAMABAD — Minister for Power Awais Ahmed Khan Leghari has officially dismissed concerns regarding potential tax increases on electricity charges, confirming that no such proposals are currently under consideration by the government.
During a briefing in Islamabad regarding ongoing reforms within the power sector, the Minister outlined several financial and operational shifts aimed at stabilizing the nation’s energy framework. Among the primary initiatives is an effort to improve the transparency of subsidies provided to consumers utilizing fewer than 200 units of electricity per month—a group that now exceeds 21.5 million people.
Streamlining Subsidies and Financial Efficiency
To ensure that financial relief reaches only the most deserving citizens, the government is implementing a verification process that links electricity meters with Consumer National Identity Cards (CNICs) via QR codes found on billing statements. While the Minister emphasized that the subsidy for protected consumers will remain in place, he noted that this verification system is essential to redirect savings toward providing relief for other consumers. Thus far, two million individuals have completed this registration process.
The government’s broader financial strategy appears to be yielding results, with the Power Division’s burden on the federal budget decreasing by 457 billion rupees. Budgetary demands for the division have been lowered from 1,287 billion rupees to 830 billion rupees for the upcoming budget. The sector has seen a reduction in circular debt totaling 780 billion rupees.
Energy Transition and Future Outlook
Addressing the role of solar power, the Minister clarified that the government is not discouraging the technology, but rather working to integrate it as a core generation asset. The nation is currently producing 55 percent of its energy from clean, environment-friendly sources, with a goal to reach 90 percent by 2035.
Projections for the next decade suggest a significant shift in fuel reliance. Dependence on imported fuel, which stood at 2.4 billion dollars in 2025, is expected to drop to 0.3 billion dollars by 2035. These targets suggest a long-term transition toward greater energy independence.
Operational Improvements
Beyond financial and environmental reforms, the Power Division is focusing on service quality. The Minister reported that out of 6.1 million complaints received this year, 4.6 million have been resolved in a timely manner. As the government continues to refine these systems, We see likely that the ongoing digitalization through QR codes and the continued push for clean energy will remain central to the sector’s performance. Observers may expect further updates on the efficacy of these reforms as the government moves toward its 2035 clean energy benchmarks.
