Govt decides to consult all stakeholders on net metering policy after backlash

The government on Wednesday decided to broaden the scope of consultation on the Solar Net Metering Regulations approved by the Economic Coordination Committee (ECC) and re-submit the recommendations to the federal cabinet after taking further feedback from all stakeholders following widespread backlash.

This was decided during a meeting of the federal cabinet at the Prime Minister’s House today.

The government faced severe criticism after the ECC on March 13 reduced the buyback rate for net metering electricity to Rs10 per unit from the previous Rs27 per unit, attributing the decision to a “significant increase in the number of solar net-metering consumers, with associated financial implications for grid consumers”.

Addressing the meeting, Prime Minister Shehbaz Sharif expressed satisfaction over the successful completion of the first staff-level review of the $7 billion International Monetary Fund (IMF) Extended Fund Facility (EFF) and the signing of a $1.3 billion climate financing agreement.

He emphasized that these agreements reflect international confidence in Pakistan’s economic stability and reform measures.

“The IMF has recognised Pakistan’s efforts in restoring macroeconomic stability, reducing inflation to its lowest level since 2015, and improving fiscal conditions,” Sharif said.

Buyback rate of net metering likely at average energy cost

He commended Finance Minister Muhammad Aurangzeb and the economic team for their role in securing the agreements, which he said would help stabilize the economy and set it on a path toward long-term recovery.

The cabinet approved using savings from reduced petroleum prices to lower electricity tariffs for consumers, as recommended by the Power Division. It also allowed the Central Power Purchasing Agency (CPPA) to sign revised contracts with bagasse-based power plants.

Additionally, the cabinet approved the Whistleblower Protection and Vigilance Commission Act, 2025. It endorsed changes in income tax, sales tax on services, and federal excise duties in Islamabad Capital Territory as part of the resource mobilization and utilization reform program.

Furthermore, it restored tax rebates for full-time teachers and researchers under the Income Tax (Second Amendment) Bill, 2025, and endorsed recommendations from the Cabinet Committee on Privatization (CCoP) and the Economic Coordination Committee (ECC).