ISLAMABAD, Feb 12 (APP): Federal Minister for Energy Sardar Awais Ahmad Khan Leghari on Thursday said that reforms in Pakistan’s power sector are producing results, with consumers saving thousands of rupees every month and industry receiving tariff relief of more than 35 percent.
He said the country’s total electricity demand currently stands at 8,000 megawatts, while 55 percent of energy this year has come from clean sources, with a target of 60 percent by 2030 and 90 percent by 2034.
Addressing the inauguration ceremony of the Prime Minister’s Fan Replacement Program, the minister said improvements in the energy sector are the outcome of joint efforts by the government. He said negotiations with Independent Power Producers (IPPs) have been completed successfully and reforms are being implemented to ensure that their benefits reach ordinary consumers.
The minister said priority will be given to people in underdeveloped areas and to low electricity users. Under the program, consumers will see monthly savings of thousands of rupees on their electricity bills. He added that the government aims to bring Pakistan’s energy sector in line with global energy markets.
He said the fan replacement program is part of Prime Minister Muhammad Shehbaz Sharif’s power sector reforms. He explained that peak electricity demand in Pakistan increases every year, while daytime demand is falling due to the rapid spread of solar power. This situation has created stability issues for the national grid.
Sardar Awais Leghari said that solarization has posed challenges for the grid but has also supported progress in renewable and clean energy. He said Pakistan received recognition at the COP conference held in Brazil for its transition toward clean energy, where solarization was described as a public-level solar revolution.
The minister said these reforms would not have been possible without collective efforts. He said the government has taken difficult but necessary steps, including the introduction of new solar net metering regulations.
He added that the Prime Minister has decided to protect existing net metering consumers until NEPRA completes public hearings and reviews all feedback.
He said further work is underway for protected consumers and thanked the State Bank of Pakistan and the banking sector for supporting the program. He said the initiative will help reduce load shedding hours, lower pressure on the power system, and cut electricity consumption.
The minister said certified and locally manufactured fans are being provided under the program, which will support the domestic fan industry and create thousands of jobs. He added that replacing old fans will reduce transformer failures and feeder-level load.
He said that over the past 18 to 20 months, electricity prices for the most protected consumers have fallen by about 20 percent. Despite the removal of subsidies and increases in some fixed charges, tariffs for protected consumers using up to 200 and over 300 units have been reduced by more than 35 percent over two years. Industrial electricity prices have also been cut by around 35 percent, bringing them down to about 11.5 cents.
The minister said that if all fans are replaced with energy-efficient models, the need for power generation will decline further, leading to more savings. He added that the government has ended the power purchase process in view of a future competitive market and called for a ban on the production of inefficient fans so that all future stock meets efficiency standards.