ISLAMABAD: The federal cabinet on Wednesday postponed the approval of the proposed solar net metering policy, following dissatisfaction among several cabinet members, including Prime Minister Shahbaz Sharif. The decision to delay the policy came during a meeting chaired by the Prime Minister, who subsequently instructed the Power Division to review and revise the proposal.
The government had initially planned to reduce the buyback tariff for solar users from Rs. 27 per unit to Rs. 8-9 per unit, citing concerns that the previous rate was placing undue pressure on grid consumers. However, this revision faced strong opposition, leading to its postponement and prompting the government to revisit the policy.
Prime Minister Sharif’s cabinet expressed concerns over the impact the revised buyback rate would have on solar energy adoption, a key part of Pakistan’s renewable energy goals. The cabinet decided to send the policy back to the Power Division for further consultations and revisions to ensure a more balanced approach.
In a related development, Prime Minister Sharif praised the country’s successful staff-level agreement with the International Monetary Fund (IMF), which saw the review of the first phase of Pakistan’s $7 billion Extended Fund Facility. The IMF approved an additional $1.3 billion to support climate change initiatives, further bolstering Pakistan’s financial standing.
During the meeting, the cabinet also approved a reduction in electricity prices by leveraging savings from lower petroleum costs. In addition, agreements between the Central Power Purchasing Agency (CPPA) and bagasse-fired power plants were greenlit under new terms.
Further approvals included the Whistleblower Protection and Vigilance Commission Act, 2025, which seeks to enhance transparency and accountability, and amendments to tax regulations in the Islamabad Capital Territory under the Resource Mobilization and Utilization Reform Program. The cabinet also ratified the Income Tax (Second Amendment) Bill, 2025, which reinstates tax rebates for full-time teachers and researchers.
Prime Minister Sharif emphasized the government’s commitment to long-term economic stability, urging national unity to ensure sustainable growth and prosperity.
