Prime Minister Shehbaz Sharif has taken immediate notice of newly introduced solar-related regulations issued by the National Electric Power Regulatory Authority (NEPRA), directing the Power Division to ensure that the interests of existing net-metering consumers remain fully protected. The development signals high-level government engagement in response to regulatory adjustments that could affect hundreds of thousands of solar users across the country.
According to an official statement, the prime minister instructed the Power Division to promptly file a review petition with NEPRA. The objective of the petition is to safeguard contracts already signed with solar consumers, reinforcing the government’s position that previously agreed terms must not be undermined by subsequent regulatory changes. The directive underscores a policy stance focused on contractual continuity and investor assurance within Pakistan’s renewable energy landscape.
The intervention comes amid concerns that modifications in the regulatory framework may impact approximately 466,000 existing solar users nationwide. Over the past several years, distributed solar installations have expanded rapidly, largely driven by increasing electricity tariffs and declining solar panel prices. Net-metering arrangements have enabled consumers to offset their electricity costs by feeding surplus power back into the national grid, contributing to the growth of rooftop solar systems in residential, commercial, and industrial segments.
Prime Minister Shehbaz Sharif emphasized that any regulatory recalibration must avoid placing disproportionate financial pressure on the broader consumer base. He noted that more than 37.6 million electricity users rely solely on power supplied by the national grid. Ensuring fairness between grid-only consumers and those benefiting from net-metering arrangements, he indicated, is essential for maintaining sectoral balance and public trust.
In addition to seeking a review of the regulations, the prime minister directed the Power Division to develop a comprehensive strategy aimed at harmonizing the interests of both categories of consumers. The strategy is expected to address long-term sustainability of the power sector while protecting contractual rights and minimizing fiscal strain. Policymakers face the challenge of reconciling the financial implications of net-metering incentives with the operational and revenue requirements of distribution companies.
The government’s response highlights the complex dynamics shaping Pakistan’s energy transition. While distributed solar generation reduces reliance on conventional power sources and alleviates peak demand pressures, it also alters revenue flows within the grid system. Regulatory adjustments must therefore balance renewable energy promotion with the financial viability of the electricity distribution network.
Market observers view the prime minister’s directive as an attempt to maintain policy stability in the renewable energy segment. Investor confidence in distributed solar systems depends heavily on predictable regulatory frameworks and enforceable contractual arrangements. Sudden shifts in net-metering policies can create uncertainty, potentially slowing further adoption of solar technology.
At the same time, authorities remain mindful of the broader fiscal implications within the energy sector. Ensuring that regulatory measures do not unfairly shift costs onto grid-only consumers is central to maintaining equitable tariff structures. The emphasis on balanced reform reflects a recognition that energy policy must account for both innovation-driven growth and systemic sustainability.
Pakistan’s renewable energy trajectory has accelerated in recent years, with distributed solar emerging as a significant component of the energy mix. The latest directive from the prime minister signals that the federal government intends to closely monitor regulatory developments and intervene where necessary to protect consumer interests while preserving sectoral stability.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.