ISLAMABAD – Federal Minister for Energy Sardar Awais Ahmed Khan Leghari has strongly refuted the claims made in the National Electric Power Regulatory Authority’s (NEPRA) “State of Industry Report 2025,” calling several conclusions “factually incorrect.”
He defended the government’s deep-rooted reforms in Pakistan’s power sector, asserting that these measures have already started delivering relief to consumers and put the sector on a more sustainable path.
Leghari stated that NEPRA’s report was based on outdated and incomplete data, which has caused confusion about the true state of the power sector. He criticized the delay in the report’s release, noting that it should have been published earlier in August 2025. The minister further emphasized that the report failed to highlight the government’s significant progress in achieving its energy sector targets.
Regarding the circular debt issue, Leghari pointed out that the government had successfully managed to service existing debts through a debt service surcharge and was on track to eliminate circular debt within the next five to six years. He also assured that Pakistan’s circular debt, which once stood at Rs 2.4 trillion, had already been reduced by Rs 780 billion to Rs 1.6 trillion in just one year, marking a significant milestone.
The minister also addressed NEPRA’s assertion that Pakistan has around 8,700 megawatts of surplus electricity capacity, explaining that while surplus capacity exists, the government has actively reviewed and negotiated power plant contracts. Through these efforts, several inefficient plants were closed, and costly contracts were either revised or terminated, saving consumers billions of rupees.
Leghari revealed that the government had also canceled nearly 8,000 megawatts of future expensive power projects, which would have cost Pakistan an estimated $17 billion. These decisions, he explained, were based on merit and aimed at reducing unnecessary surplus power.
Furthermore, the energy minister highlighted K-Electric’s contribution to increasing circular debt, stating that due to unpaid dues by the utility, circular debt had increased by Rs 640 billion up until June 2023. Despite receiving over Rs 600 billion in subsidies over the past five years, K-Electric had failed to meet regulatory targets, placing additional strain on the national budget.
Leghari also questioned NEPRA’s claim about a Rs 780 billion reduction in circular debt, labeling it misleading. He clarified that this reduction includes Rs 193 billion from lower distribution losses, Rs 260 billion from successful negotiations with Independent Power Producers (IPPs), and Rs 300 billion from improved macroeconomic indicators.
Touching on recovery improvements, the minister stated that the recovery rate of Distribution Companies (DISCOs) had increased from 92.4% to 96.6% during FY2025, significantly reducing the recovery gap by Rs 183 billion. He added that a new recovery mechanism was in place for government departments, ensuring that 25% of collections were now made through a federal adjuster.
Leghari also noted that the government had accelerated the digitalization of the power sector, with 1.6 million smart meters installed across the country. These meters, along with the “Apna Meter, Apni Reading” mobile app, have empowered consumers to take control of their billing and meter readings, ensuring greater transparency.
Despite NEPRA’s observations about meter readings and billing, the minister emphasized that consumers now had the right to submit their meter readings, a reform aimed at greater consumer empowerment and transparency in the system.
Additionally, the national electricity tariff has declined from Rs 53.04 per unit in March 2024 to Rs 42.27 per unit in December 2025, reflecting the positive effects of the government’s sustained reforms in the power sector.
Leghari also addressed NEPRA’s decision to exclude commercial load shedding from the regulatory framework, arguing that it was an incorrect move. He explained that the government had taken proactive steps to improve generation planning, ensuring that power plants and transmission expansions were aligned with the actual demand, preventing inefficiencies caused by incorrect demand projections.
The energy minister further revealed that measures to reduce future tariffs, including renegotiations of existing contracts, debt refinancing, and a three-year incentive package, are expected to lower the burden on consumers by up to Rs 400 billion in the coming years.
Leghari defended the government’s approach to power sector reforms, stating that significant progress had already been made in reducing inefficiencies and empowering consumers.
He rejected NEPRA’s claims as misleading and reiterated the government’s commitment to improving the power sector’s sustainability while safeguarding consumer interests.
