The government has decided to expand consultations on the Solar Net Metering Regulations, which were recently approved by the Economic Coordination Committee (ECC). After receiving strong public backlash, officials will seek further input from stakeholders before presenting revised recommendations to the federal cabinet.
This decision was made during a cabinet meeting at the Prime Minister’s House on Wednesday. The controversy arose after the ECC reduced the buyback rate for net-metered solar electricity from Rs27 per unit to Rs10 per unit on March 13. The government defended the move, citing the rising number of solar users and the financial burden on other grid consumers.
During the meeting, Prime Minister Shehbaz Sharif praised the successful completion of Pakistan’s first staff-level review under the $7 billion IMF Extended Fund Facility (EFF) and the signing of a $1.3 billion climate financing deal. He said these agreements reflect growing international confidence in Pakistan’s economic stability and reform efforts.
Sharif highlighted that the IMF has acknowledged Pakistan’s progress in restoring macroeconomic stability, reducing inflation to its lowest level since 2015, and improving fiscal management. He also commended Finance Minister Muhammad Aurangzeb and the economic team for securing the agreements, which he believes will help stabilise the economy and support long-term recovery.
The cabinet approved a proposal to use savings from lower petroleum prices to reduce electricity tariffs. It also gave the green light for the Central Power Purchasing Agency (CPPA) to revise contracts with bagasse-based power plants.
Additionally, the cabinet passed the Whistleblower Protection and Vigilance Commission Act, 2025, and endorsed changes in income tax, sales tax on services, and federal excise duties in Islamabad as part of broader economic reforms.
It also restored tax rebates for full-time teachers and researchers under the Income Tax (Second Amendment) Bill, 2025, while approving recommendations from the Cabinet Committee on Privatization (CCoP) and the ECC.
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