The Economic Affairs Committee of Pakistan’s National Assembly has raised serious concerns over the government’s solar energy policy. During a recent meeting, committee members highlighted contradictions in the current policy. They questioned the reduction in solar net metering rates and the government’s changing stance on renewable energy. Chairman Mohammad Atif Khan led the session, focusing on the failures of the power sector over the last 30 years. Lawmakers expressed frustration over how inconsistent decisions are affecting people and businesses.
Officials from the Power Division presented a briefing on the status of distribution companies (DISCOs). They said that the government is working to improve transparency by privatizing three DISCOs in the first phase. These companies have fewer losses compared to others, which is why they were chosen first. Financial advisors have been hired to guide the privatization process. However, committee members questioned this move, asking why better-performing companies are being sold before struggling ones.
Committee member Mirza Ikhtiar Baig criticized the power policy, calling it full of contradictions. He said the government first encouraged solar energy but is now discouraging it. He highlighted that the net metering rate was cut from Rs. 27 to Rs. 11 per unit. Baig said this change hurt both individual investors and industries. “I invested the money, but the minister decides when I’ll get it back,” he said.
Atif Khan supported Baig’s concerns and said the power sector has caused the most damage to the country. He noted that electricity prices are unaffordable for the common person. The high cost of capacity payments will burden citizens for the next 30 years. Despite the surplus in electricity, solar adoption is being restricted. He questioned why the government is not aligning its policies with long-term national interests.
In response, Power Division officials denied any plan to discourage solar energy. They said no formal step has been taken against solar projects. They also clarified that the 2021 power policy was made by the Council of Common Interests. However, lawmakers remained unsatisfied with the explanation. They stressed the need for consistent, investor-friendly policies to fix the broken power system and reduce the burden on the public.