Leghari and Miftah lock horns over govt’s net-metering policy shift

ISLAMABAD: Federal Power Minister Sardar Awais Leghari and former finance minister Miftah Ismail engaged in a public war of words on Thursday over the government’s controversial proposal to revise solar net-metering rates.

The debate unfolded after Miftah Ismail accused the federal government of reneging on its promises to rooftop solar power users by slashing the rates at which excess solar energy is bought from consumers. Speaking at a press conference in Karachi, Ismail criticised the imposition of an Rs8 per unit sales tax on electricity purchased from net-metering consumers, calling it a “betrayal” of solar users who had invested heavily in renewable energy solutions.

“First, they encouraged the people to adopt rooftop solar with the promise of net-metering benefits,” Ismail said, referring to earlier commitments by Prime Minister Shehbaz Sharif. “Now, the government is taking a U-turn by replacing net-metering with gross-metering and punishing solar consumers with taxes.”

He also pointed out the contradiction in the government’s energy strategy. “They claim it’s a burden to purchase 1,300 gigawatt-hours from rooftop solar producers, yet they are happily buying from IPPs at rates as high as Rs70 per unit,” he said. “The real issue lies in the government’s failure to reform the energy sector and cut losses in power distribution.”

Ismail argued that high power costs were driving industries away, hampering foreign investment. He blamed successive governments for failing to fix Pakistan’s energy crisis, holding both federal and provincial leadership responsible for “populist promises” like free power to certain groups during election campaigns, which he said have only added to the system’s inefficiencies.

Responding to the criticism, Federal Power Minister Awais Leghari dismissed Ismail’s claims as “misleading” and “based on incorrect data.” He defended the government’s energy reforms, stating that regulatory changes to net-metering would make solar energy more affordable in the long run and expand its share in the national grid.

“The government’s focus is on clean, affordable energy,” Leghari said. “By adjusting the net-metering regime, we are ensuring solar power’s sustainability. Future consumers will recover their investment in just three to four years, which makes it an excellent opportunity.”

Leghari claimed that Pakistan’s net-metering capacity had already added over 4,000 megawatts to the grid and projected that this figure would reach 12,000 MW within eight years. He also reassured existing net-metering consumers that they would continue to benefit from their original tariff agreements.

Globally, Leghari argued, net-metering policies are revised to prevent imbalances in energy systems and financial losses. He also highlighted the government’s renegotiations with IPPs, which he said had resulted in savings of Rs1.5 trillion. “These savings will ultimately benefit ordinary Pakistanis through lower energy costs,” he added.

Leghari further outlined the government’s progress in boosting the clean energy mix. “Last year, over 55 per cent of Pakistan’s power came from clean sources—hydropower, solar, wind and nuclear. Our target is to increase that to 85 per cent in the coming years.”

The spat between the two prominent politicians underscores the growing political divide over Pakistan’s energy future. While the government claims its energy reforms are vital to economic stability and sustainability, critics argue that abrupt policy shifts undermine investor confidence and penalise citizens who invested in rooftop solar systems under earlier promises.

Leghari also pushed back on Miftah Ismail’s criticism of the government’s handling of essential commodities like sugar and wheat, calling it “political posturing.” “We’ve made timely decisions to stabilise supplies. It’s unfortunate that a former finance minister is choosing to play politics with economic matters,” he said.

Despite the government’s assurances, public concern over the changing solar policy remains high, with many stakeholders calling for a clearer roadmap and better consultation with consumers and industry experts before making regulatory changes.

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