Key Points
- Power minister highlights $17 billion estimated savings from reforms
- Concerns raised over NEPRA’s August 2025 report accuracy
- Smart meter rollout and billing improvements reduce consumer burden
- Circular debt expected to be cleared in 5-6 years
ISLAMABAD: Federal Minister for Power Awais Ahmed Khan Leghari expressed concerns on Sunday over the accuracy of the National Power Regulatory Authority’s (NEPRA) August 2025 report, saying it failed to present the correct picture of Pakistan’s power sector due to insufficient data.
Speaking at a press conference in Islamabad, Leghari said the government had successfully negotiated with independent power producers to reduce electricity prices. He added that, for the first time, future expensive projects totalling 8,000 megawatts were cancelled on merit-based decisions. These measures are estimated to save the country more than $17 billion.
He emphasised that losses in the power sector are not passed on to ordinary consumers, and reforms are designed to resolve systemic issues. “Electricity consumers are provided facilities as a top priority,” he said, noting that government initiatives have already led to significant reductions in circular debt.
Smart meter initiative
Leghari highlighted that consumers now have the option to record their own electricity meter readings through the new smartphone application “Apna Meter Apni Reading,” which is available to all users. He said this initiative improves transparency and ensures accurate billing.
The minister added that overbilling worth 40 billion rupees has not been passed on to consumers, and the national average electricity price has significantly decreased. He noted that by March 2024, the national average electricity price was 53.04 rupees per unit, which fell to 42.27 rupees per unit by December 2025.
Circular debt and subsidy reduction
Leghari stated that K (Karachi)-Electric received subsidies exceeding 600 billion rupees over the past five years. To date, 1.6 million smart meters have been installed nationwide. Reforms are expected to reduce the burden on consumers by 400 billion rupees. The government aims to eliminate circular debt within the next 5 to 6 years.
He concluded that these reforms and initiatives reflect the government’s commitment to providing affordable electricity, improving efficiency, and reducing financial stress in the power sector.
