Government Preparing Amendments to Net Metering Rules, Says Energy Minister Owais Leghari

Islamabad: Federal Minister for Energy Sardar Owais Ahmad Khan Leghari has announced that the government is preparing amendments to Pakistan’s net metering regulations, along with plans for privatizing electricity distribution companies (DISCOs) and enabling direct power trading in the energy market.

Speaking at a seminar organized by the Pakistan Business Council, the minister said that the share of renewable and cost-effective energy sources is increasing across the country, and for the first time, Pakistan is developing a long-term policy framework for the energy sector.

He stated that Pakistan’s economy is strengthening and the government is taking every possible step to provide relief to the public. Highlighting the need for improvements in the net metering system, he said that difficult decisions were necessary to stabilize the economy. “We are improving the performance of distribution companies and have already implemented major reforms in the energy sector,” he added.

Leghari emphasized the government’s commitment to promoting green energy, saying Pakistan is actively expanding clean energy initiatives. The country has vast potential in the energy sector, and comprehensive planning-backed reforms are being introduced for the first time. He confirmed that privatization is also part of the broader reform agenda.

“We are bringing reforms across the energy sector. Industries are being given subsidized electricity tariffs. Pakistan is among the fastest-growing countries in the solar energy sector,” he said.

The minister noted that Pakistan’s power sector is not technically aligned with global standards, and rising fuel costs coupled with the depreciation of the rupee have weakened the sector. The Ministry of Energy has identified 28 major reforms and expects the competitive energy market to become operational in the coming months.

Calling the depoliticization of the power sector one of the government’s biggest reforms, Leghari said that significant progress has been made in reducing circular debt. “We have renegotiated agreements with IPPs, and work on the early closure of inefficient power plants is underway,” he added.

He revealed that the share of renewable energy in Pakistan’s energy mix has reached 55 percent. The government is preparing amendments to net metering laws, advancing DISCOs’ privatization, and moving toward a market system where direct power trading will be possible.

Leghari reiterated that in the future, the government will no longer remain the primary buyer of electricity. The ministry has also initiated an effective review of regulatory decisions and introduced new measures aimed at strengthening governance, transparency, and financial stability in the power sector.