The federal cabinet decided on Wednesday to delay approving the new solar net metering policy because several cabinet members, including Prime Minister Shahbaz Sharif, weren’t fully satisfied with the proposed plan. During a meeting led by Prime Minister Sharif, it was agreed that the Power Division would review and improve the policy before bringing it back for consideration.
In the first instance, the government had intentions to lower the amount receivable from the grid for power generated through solar panels from, say, Rs. 27 per unit to Rs. 8-9 per unit. The motive was to try and reduce the financial burden that high tariffs would obviously place on regular consumers of the grid. However, the proposal evoked very strong reactions along the lines of its discouragement of solar energy adoption. As a result, the cabinet declined to clear the proposal but advised the Power Division to rethink policy options and find another fair solution.
During the same meeting, Prime Minister Sharif praised Pakistan’s recent successful agreement with the International Monetary Fund (IMF). Under this agreement, Pakistan has completed the first review of a $7 billion support package known as the Extended Fund Facility. The IMF also approved an extra $1.3 billion specifically for projects aimed at fighting climate change, providing additional financial strength to the country.
The cabinet also approved several other decisions. For instance, they agreed to reduce electricity prices, using money saved from recent drops in petroleum costs. They also gave the green light to new agreements between the Central Power Purchasing Agency (CPPA) and power plants that produce electricity from bagasse (sugarcane waste).
The cabinet, as expected, also approved the Whistleblower Protection and Vigilance Commission Act, 2025, which was designed to promote openness and accountability in all operations of the government. The Cabinet took up and endorsed the amendment of Islamabad Capital Territory tax laws for improved tax collection under the Resource Mobilization and Utilization Reform Program. The Income Tax (Second Amendment) Bill, 2025, which benefits from tax rebates in favor of full-time teachers and researchers towards education and research, was also approved.
Finally, Prime Minister Sharif emphasized the government’s dedication to achieving long-term economic stability. He urged all Pakistanis to unite in order to secure lasting growth and prosperity for the country.
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