The federal cabinet of Pakistan has postponed the approval of the Solar Net Metering Policy, citing the need for further assessment and stakeholder consultations.
This decision, taken under the leadership of Prime Minister Shahbaz Sharif, highlights the government’s intention to ensure a fair and balanced policy that benefits both solar energy users and grid consumers.
During the cabinet meeting on Wednesday, several members, including the Prime Minister, expressed concerns about the proposed amendments to the solar net metering framework.
The government had initially planned to revise the net metering buyback tariff, reducing the rate from Rs. 27 per unit to between Rs. 8 and Rs. 9 per unit.
Why Was the Solar Net Metering Policy Revised?
The primary reason behind the policy revision is the rapid growth of solar power adoption in Pakistan. As more consumers install solar photovoltaic (PV) systems and benefit from net metering, the government has raised concerns about its impact on overall electricity pricing and the national grid.
- As of December 2024, Pakistan had approximately 283,000 net metering consumers, a sharp increase from 226,440 in October 2024.
- The cumulative installed capacity of net-metered solar systems had reached 4,124 MW by the end of 2024.
- The Power Division reported that by December 2024, net-metering consumers had shifted a financial burden of Rs. 159 billion to grid consumers.
While reviewing the solar net metering policy, Prime Minister Shahbaz Sharif also acknowledged Pakistan’s recent economic progress, particularly regarding the International Monetary Fund (IMF) agreement.
- Pakistan successfully completed the first phase of the $7 billion Extended Fund Facility.
- The IMF approved an additional $1.3 billion to support climate change initiatives.
Prime Minister Shahbaz Sharif commended Finance Minister Muhammad Aurangzeb and the economic team for their efforts in securing these agreements.
Other Key Decisions Taken by the Cabinet
Apart from the solar net metering policy postponement, the federal cabinet made several important decisions during the meeting.
The cabinet approved a reduction in electricity tariffs, utilizing savings from lower petroleum prices.
The government approved agreements between the Central Power Purchasing Agency (CPPA) and bagasse-fired power plants under revised terms.
The cabinet gave in-principle approval to the Whistleblower Protection and Vigilance Commission Act, 2025.
As part of the Resource Mobilization and Utilization Reform Program, amendments were made to the tax regulations in Islamabad Capital Territory (ICT). These reforms follow earlier tax adjustments introduced in 2023 and 2024.
The cabinet approved the Income Tax (Second Amendment) Bill, 2025, which reinstates tax rebates for full-time teachers and researchers.
- The Cabinet Committee on Privatization (March 11, 2025)
- The Economic Coordination Committee (March 13 and 21, 2025)
These decisions reflect the government’s commitment to economic restructuring and enhancing investment opportunities in the private sector.
Future of Solar Net Metering in Pakistan
The federal cabinet’s decision to delay the approval of the Solar Net Metering Regulations signals a cautious approach towards renewable energy policy-making.
To achieve a balanced policy framework, the government will engage in broader consultations with key stakeholders.
This approach will help in formulating a comprehensive net metering policy that benefits both solar adopters and grid users.
Prime Minister Shahbaz Sharif reiterated that Pakistan’s policies focus on long-term stability and sustainable growth. He urged national unity in economic recovery efforts.
- Renewable energy adoption must be managed strategically.
- Electricity pricing must be equitable for all consumers.
- Economic policies should foster sustainability and investment growth.
