- Energy Minister says Nepra’s report based on outdated and insufficient data, leading to misperceptions about power sector’s performance
- Says nearly 8,000 MW of expensive power projects cancelled after negotiations with IPPs, saving $17b in future costs
- Highlights national average electricity tariff drops from Rs53.04/unit to Rs42.27/unit, putting sector on a sustainable path
- Says 1.6 million smart meters installed, emphasizing ‘Apna Meter, Apni Reading’ empowers consumers
- Claims DISCO recoveries improve from 92.4% to 96.6%, while recovery gap shrinks by Rs183b
ISLAMABAD: Federal Minister for Power Sardar Awais Ahmed Khan Leghari on Sunday strongly rebutted claims made in the National Electric Power Regulatory Authority’s (NEPRA) State of Industry Report 2025, terming several conclusions “factually incorrect” and asserting that deep-rooted reforms have already delivered tangible relief to electricity consumers while putting the power sector on a sustainable path.
Addressing a press conference, Leghari said NEPRA’s report was based on outdated and insufficient data, leading to misperceptions about the sector’s performance. He highlighted that the report, which should have been released in August 2025, failed to reflect the government’s achievements, including improvements in debt management, tariff rationalization, and consumer empowerment initiatives.
The minister emphasised that the government’s six-year circular debt settlement plan is firmly on track, noting that circular debt, which once stood at Rs2.4 trillion, has been reduced to Rs1.6 trillion within a year—marking the first significant decline in decades. He said that contrary to NEPRA’s assertions, the government has fully serviced existing debt through the debt service surcharge and is committed to completely eliminating circular debt within five to six years.
Responding to NEPRA’s claim that Pakistan has around 8,700 megawatts of surplus electricity capacity, Leghari acknowledged the presence of surplus capacity but said it was inaccurate to suggest the government had not reviewed “take-or-pay” and “must-run” contracts. He explained that extensive negotiations with Independent Power Producers (IPPs) had resulted in the termination or revision of several costly contracts and the closure of inefficient power plants. These measures, he said, saved consumers billions of rupees while ensuring sector sustainability.
The minister highlighted a historic, merit-based decision to cancel nearly 8,000 megawatts of future expensive power projects, including 7,967 MW selected purely on merit. “These actions eliminated unnecessary surplus power and will save consumers an estimated $17 billion in future costs,” he said.
Leghari also discussed the ongoing issue of K-Electric, stating that non-payments by the utility up to June 2023 caused a Rs640 billion increase in circular debt, with more than Rs300 billion still outstanding as of November 30, 2025. He noted that KE has received over Rs600 billion in subsidies over five years, adding to the national fiscal burden, and warned that regulatory targets had been comparatively relaxed.
Addressing NEPRA’s claim regarding a Rs780 billion reduction in circular debt, the minister clarified that the figure comprises Rs193 billion from lower DISCO losses, Rs260 billion from IPP negotiations, and Rs300 billion from macroeconomic improvements. “All these figures were formally shared with NEPRA; its apparent ignorance is surprising,” he said.
The minister also detailed improvements in DISCO operations, reporting that recoveries rose from 92.4% to 96.6% in FY2025, shrinking the recovery gap from Rs315 billion to Rs132 billion — a reduction of Rs183 billion. He said recovery performance continued to improve in FY2026, with an additional Rs43 billion collected compared to the same period last year. Government departments are now contributing 25% of verified bill payments through federal adjusters, ensuring compliance and accountability.
Leghari stressed that losses arising from subsidies are borne by the government and not passed on to consumers, adding that overbilling of Rs40 billion was corrected and not charged to users. He highlighted steps to digitalise the sector, including the installation of 1.6 million smart meters with 90% communication coverage. Consumers can now submit readings through the “Apna Meter, Apni Reading” app, a reform aimed at transparency and empowerment.
He also noted that the national average electricity tariff declined from Rs53.04 per unit in March 2024 to Rs42.27 per unit in December 2025, reflecting the positive impact of reforms. Further measures, including renegotiation of tariffs, three-year incentive packages, and debt refinancing, could reduce the future burden on consumers by up to Rs400 billion.
On planning, the minister rejected claims related to the Integrated Generation Capacity Expansion Plan (IGCEP), asserting that generation and transmission decisions were fully merit-based and aligned for the first time, avoiding inefficiencies from flawed projections. He reiterated that overbilling losses had been controlled by 17%, and that governance reforms empowered consumers, resulting in refunds exceeding Rs40 billion while improving recoveries by Rs183 billion.
Leghari concluded by emphasising that the government’s reforms are designed to ensure long-term sustainability, transparency, and relief for electricity consumers, while placing Pakistan’s power sector on a path of efficiency and fiscal discipline.
