LAHORE: Minister for Power Division Awais Leghari has announced a significant shift in energy policy, revealing that net-metering reforms designed to enhance system equity are expected within weeks, while the implementation of the Competitive Trading Bilateral Contract Market (CTBCM) is projected for early next year.
The minister was speaking at the Second Asia Energy Transition Summit in Lahore, an event co-hosted by the LUMS Energy Institute, the Alliance for Climate Justice and Clean Energy, and the Pakistan Renewable Energy Coalition, which attracted extensive participation from senior government officials, foreign diplomats, global climate advocates, development organisations, researchers, and civil society groups across Asia, Europe, and the Pacific.
In his keynote address, Leghari presented an ambitious vision for a sustainable energy future, focusing on the transformation of the power sector to achieve clean, green, and consumer-oriented energy solutions. He stressed that net-metering policies are being improved to ensure fairness, specifically to prevent a small group of users from imposing an undue financial burden on the majority. While the initiative remains consumer-friendly, modifications will be rolled out in the coming weeks to enhance the system and promote equity among all users.
Leghari further confirmed that the CTBCM policy framework has been sent for official approval and is expected to be implemented in the first quarter of next year. The CTBCM is pivotal, as it aims to introduce a more competitive and transparent electricity market in the country by allowing consumers and generators to engage directly in bilateral contracts for power purchase, thereby enhancing efficiency, reducing costs, and improving the power sector’s overall sustainability.
The minister emphasised an aggressive target to generate 90 per cent of the country’s electricity from clean and green energy sources by 2035, positioning the nation as a global model for solar energy adoption. He noted that the solar revolution has already gained international recognition, with the public installing 17 GW of capacity, contributing to a historic milestone where 52 per cent of the country’s electricity currently comes from clean sources.
Addressing immediate challenges, Leghari prioritised the privatisation of Discos (distribution companies) and the reduction of circular debt as key government focuses. He highlighted the profound irony that low-emission countries like Pakistan bear the severe brunt of climate impacts, stressing that Asia, which consumes 48 per cent of the world’s energy, is central to the global energy transition.
Leghari underscored that energy transition is not merely an environmental imperative but an economic survival issue for Pakistan, a country contributing less than 1.0 per cent to global emissions yet ranking among the top 10 most climate-vulnerable nations.
Innovative initiatives highlighted by the minister include solarising tubewells in Balochistan to tackle both water and energy crises. He pointed out Asia’s substantial $300 billion annual climate-related losses while noting the region’s impressive 900 per cent increase in renewable energy investments, which is leading globally. Reforms in net metering have already strengthened the system and boosted consumer trust.
Leghari addressed past gaps in integrated planning and reaffirmed the government’s commitment to shifting towards competitive energy markets, with the goal of ultimately reducing electricity tariffs. Operational reforms include making the 118 helpline a national standard for transparency, enhancing Discos’ technical capabilities through PPMCL, and improving grid operations via NTDC restructuring. On policy fronts, he noted ongoing efforts to reduce capacity payments, an achieved Rs16 reduction in industrial tariffs, and efforts to address hurdles in provincialising the power sector, which will be pursued in parliament and the Council of Common Interests (CCI).
Leghari reiterated that clean and green energy is a national priority, indispensable for economic stability, as the country navigates challenges such as floods and heatwaves while steering Asia’s energy transition narrative.
Delivering the inaugural address, Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal highlighted strategic reforms underway to secure the country’s energy future. He emphasised the centrality of a resilient, forward-looking grid and the efficient use of energy resources. He stated that the government is strengthening its power infrastructure to integrate large-scale renewables, viewing modern infrastructure as indispensable to a green, competitive economy. He reaffirmed the importance of energy efficiency, stating, “The most reliable source of clean energy is the energy conserved.” He also called for deeper multilateral engagement, partnership-driven financing, and wider regional cooperation, noting that no country can undertake this transition alone.
In the plenary dialogue, former SBP governor Dr Shamshad Akhtar stressed the necessity for Asia to steer global transition debates with clarity and confidence, advocating for integrated planning frameworks that balance financial prudence, technological readiness, and social equity.
Justice Syed Mansoor Ali Shah, former judge of the Supreme Court of Pakistan, highlighted the crucial legal and institutional dimensions of the transition, underscoring that climate and energy governance must be rights-based, transparent, and adaptive to emerging risks. He also shared an observation regarding global climate finance, stating that it has never matched the scale of the climate challenge and has often materialised late, mostly as loans, contrasting this with the landmark Supreme Court ruling that declared climate finance a fundamental right since no climate adaptation is possible without it. Provost Lums Dr Tariq Jadoon and Chairperson of National Grid Company Dr Fiaz Chaudhry also contributed to the discussions.
