The federal government has stopped the implementation of its decision to shift consumers from net metering to net billing following strong political and public backlash. Power Minister Awais Leghari told the National Assembly that the government will also file an appeal against the regulator’s decision as debate intensifies over the future of Pakistan’s solar policy.
Speaking during a National Assembly session, the minister said the net metering issue must be viewed within the broader context of power sector reforms. He confirmed that the government has halted implementation of the new policy and will challenge the regulator’s ruling through an appeal.
Net metering, introduced in 2017, allows solar consumers to sell excess electricity to the national grid. Over the years, the framework has undergone multiple regulatory changes. The matter was recently reviewed by the Economic Coordination Committee and the federal cabinet before controversy erupted.
Leghari questioned whether it was fair for the government to buy electricity at Rs. 27 per unit from net metering consumers when power from other sources is available at around Rs. 8 per unit. He noted that nearly 700,000 consumers are currently on net metering, out of a total 39.22 million electricity consumers nationwide.
Solar Capacity and Consumer Impact
According to the minister, total solar power capacity in Pakistan stands between 20,000 and 22,000 megawatts. Around 6,000 to 7,000 megawatts fall under net metering, while approximately 7,000 megawatts are installed in the industrial and commercial segment. Off-grid solar capacity stands at 12.62 megawatts.
He pointed out that only 8 to 10 percent of consumers are benefiting from net metering, while about 35 million consumers are not part of the scheme, raising questions about equity in tariff structures.
Load Shedding and Financial Challenges
During the session, the Power Division revealed that out of 12,665 feeders nationwide, 2,223 are facing load shedding exceeding 10 hours. The worst-hit areas include Quetta, Sukkur, tribal districts and Peshawar, while Lahore, Islamabad, Gujranwala and Faisalabad reported no feeders with extended outages.
Transmission losses exceeded Rs. 600 billion over the past two years, with Rs. 322 billion in FY24 and Rs. 284 billion in FY25. Distribution losses were highest in Peshawar, followed by Quetta, Lahore and Sukkur.
The minister said electricity consumers are paying Rs. 310 billion annually to service circular debt. However, he claimed the government has reduced circular debt by Rs. 780 billion and renegotiated agreements with independent power producers, securing relief worth Rs. 3,400 billion. Projects totaling 7,967 megawatts of high-cost electricity have also been cancelled.
The government’s attempt to move from net metering to net billing triggered criticism from solar consumers and opposition parties, who argued that the shift would discourage renewable energy adoption and penalize households investing in rooftop solar systems.
By suspending implementation and filing an appeal, the government appears to be reassessing its approach while balancing fiscal pressures, circular debt management, and renewable energy growth.
The debate highlights the broader challenge of reforming Pakistan’s power sector while ensuring fairness, affordability and sustainability.
