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5 clusters · 15 sources · 30 days · First seen about 2 months ago · Last updated 21 days ago

Pakistan power sector debt, tariffs and solar policy shifts

Overview

In late July 2026, Pakistan's power sector faced mounting financial pressure. The government’s reduction of budgetary support by Rs 98 billion added Rs 61 billion to circular debt for fiscal year 2025–26, bringing the total to Rs 1.638 trillion. Despite this, reforms lowered distribution-company (DISCO) losses to Rs 326 billion from Rs 397 billion the previous year. Prime Minister Muhammad Shehbaz Sharif ordered a technical audit of DISCO billing systems and emphasized smart-meter installation and anti-theft measures. Simultaneously, the National Electric Power Regulatory Authority (NEPRA) held hearings on a request by the Central Power Purchasing Agency to raise electricity tariffs by Rs 1.20 per unit under the Fuel Cost Adjustment (FCA) mechanism. This follows a recent Rs 0.34 per unit hike. To manage peak evening demand, which has exceeded 26,000 MW, the Power Division proposed a cash-incentive scheme for solar-battery owners, offering Rs 18–22 per kilowatt-hour for electricity supplied between 5 p.m. and 10 p.m. This follows a surge in battery-storage imports, which reached 652.2 MWh in April 2026. In late August, the Power Division moved to expedite thousands of pending rooftop solar net-metering connections. This directive aims to protect consumers who completed requirements before a February policy overhaul that replaced the net-metering framework with a net-billing system, which significantly reduces the value of electricity sold back to the grid. To ensure eligibility, the Pakistan Information Technology Company (PITC) has been tasked with reviewing billing software to verify applications from users who had already paid demand notices or received licenses prior to the February 9 cutoff. Additionally, NEPRA is reviewing a new request from the Central Power Purchasing Agency for a Rs 2.52 per unit electricity tariff hike for July 2026, driven by high generation costs for diesel, imported coal, and LNG.

Entities

Pakistan · Pakistan Power Division · Muhammad Shehbaz Sharif · NEPRA · Battery storage market

Timeline

21 days ago

[BUSINESS] 7 sources
Pakistan considers electricity tariff hike and gas subsidy reforms
Pakistan considers an electricity tariff hike of Rs2.52 per unit and a major reform to replace slab-based gas subsidies with uniform pricing and targeted social support.
22 days ago

[BUSINESS] 3 sources
Pakistan expedites pending rooftop solar net-metering connections
Pakistan is expediting pending rooftop solar net-metering connections to protect consumers who completed requirements before a February policy shift to a net-billing system.
about 1 month ago

[BUSINESS] 6 sources
Pakistan Power Division offers cash incentives for solar battery storage at evening peaks
Pakistan's Power Division proposes paying solar battery owners Rs 18‑22/kWh for evening‑peak electricity to ease 26,000 MW demand, amid rapid battery import growth and limited regulation.
about 2 months ago

[BUSINESS] 2 sources
Pakistan may raise electricity tariff by Rs1.20 per unit
NEPRA is reviewing a CPPA proposal to raise Pakistan's electricity tariff by Rs1.20 per unit for August, following a recent Rs0.34 increase for July, citing fuel cost adjustments for June generation.
about 2 months ago

[BUSINESS] 2 sources
Pakistan power sector circular debt rises as budget cuts offset reforms
Pakistan’s power sector debt rose by Rs61 bn after budget cuts, while the prime minister ordered a DISCO billing audit, smart‑meter rollout and village solar projects.

Sources

arabnews.pk · arynews.tv · bolnews.com · customstoday.com.pk · dailymeezan.com · dailytimes.com.pk · ecogeneration.com.au · flare.pk · mediabites.com.pk · pakbanker.com · philnews.ph · pv-magazine.com · techjuice.pk · techx.pk · theneutral.pk

This summary has been updated 3 times: see revision history