Leghari Defends Net-Metering Policy Shift, Miftah Ismail Rejects Claims

Islamabad-(Mudassar Iqbal)-A dispute arose between former Finance Minister Miftah Ismail and Federal Power Minister Sardar Awais Leghari on Thursday regarding the government’s plan to lower solar net-metering rates, . Ismail criticized the proposed changes as a reversal of commitments to rooftop solar users, while Leghari argued they would enhance affordability and grid integration.

Speaking at a press conference in Karachi, Ismail accused the government of a policy reversal and taking a U-turn on the matter of installing solar home systems by slashing the net-metering rates.

He criticised the government move to impose Rs8 sales tax on every unit purchased from the consumers who have installed on-grid rooftop solar systems under the net-metering system.

The former finance minister said the government would again impose the sales tax when it sells electricity to consumers. He recalled that earlier, Prime Minister Shehbaz Sharif had encouraged consumers to install solar systems under the net-metering regime.

The government had introduced the gross-metering regime after abolishing the system of net-metering, he added.

He lamented that it had become cumbersome for the government to purchase 1,300 gigawatt-hours of electricity from the consumers who have been producing solar power under the net-metering system.

In contrast, he pointed out, purchasing electricity from independent power producers (IPPs) at a higher rate of Rs70 per unit does not seem to create any financial burden on the government.

Ismail said the power consumers who have installed rooftop solar systems under the net-metering regime would now suffer because of government-built power plants producing expensive electricity.

He said Pakistan failed to attract foreign investment due to the high cost of electricity for industries. The government has not been doing anything to reduce the financial and technical losses suffered by the power distribution companies in the country, he added.

The ex-minister also said the government should be held accountable for the expensive power plants set up in the country. Rulers of Sindh and Punjab should also be held accountable for their announcements during election campaigns that up to 300 units of electricity would be supplied to consumers for free, he added.

Meanwhile, Leghari dismissed Ismail’s criticism, accusing him of misleading the public with incorrect and baseless figures. Leghari defended the government’s energy policies, particularly the promotion of renewable energy and reforms in the power sector, calling them vital steps toward economic stability.

He said the government prioritised clean and affordable energy, encouraging residents to instal solar panels. He highlighted that changes in net-metering regulations have led to lower solar energy prices, adding over 4,000 MW of solar-generated electricity to the national grid.

The federal minister projected that within the next eight years, solar net-metering capacity would surpass 12,000 MW. “Future net-metering consumers will recover their investment within three to four years, which is an excellent return,” he said, making the assurance that current net-metering users would continue to benefit from previously agreed tariffs.

Leghari pointed out that globally, net-metering tariffs are adjusted to avoid unnecessary pressure on national grids and economies. He further revealed that the government renegotiated agreements with IPPs through mutual consensus, saving over Rs1.5 trillion, which, he said, would soon be passed on to consumers via lower electricity prices.

He also underscored Pakistan’s progress in clean energy, saying that over 55 per cent of the national grid’s supply last year came from clean sources, including hydel, solar, wind and nuclear power. He projected that clean and green energy would reach 85 per cent of the mix in the coming years.

Defending the government’s management of sugar and wheat supplies, he dismissed Ismail’s criticism as politically motivated. “It’s unfortunate that a former finance minister is politicising economic matters without presenting facts,” said Leghari, adding that timely decisions by the government ensured stable supplies of essential commodities.

“The government is making every effort to improve the energy, agriculture and economic sectors. The scale of reforms in the power sector is unprecedented, and ignoring these achievements is deeply regrettable.”