KARACHI: Pakistan will not abolish its solar net metering policy but is working to reform the mechanism to make it more “transparent and sustainable,” Energy Minister Sardar Awais Leghari said on Wednesday.

Net metering allows consumers to generate electricity through solar panels and sell excess power back to the national grid, receiving credits or monetary compensation in return. The policy was introduced in 2017 to promote renewable energy and ease pressure on the national grid.

“The government is not abolishing net metering but is considering changing its current mechanism to a more effective, transparent and sustainable model,” the Ministry of Energy’s Power Division said in a statement.

The minister said the expansion of net metering was now impacting the national grid and reforms were needed to address this in a “timely manner.”

Pakistan’s current policy pays Rs21 per unit of solar electricity, resulting in a government subsidy of Rs1.90 per unit, according to the energy ministry. Officials say the cost is ultimately borne by domestic and industrial consumers, effectively subsidizing wealthier users who can afford to install solar panels.

Leghari said the government may align the solar purchase rate with overall energy procurement prices, allowing it to adjust with market fluctuations. However, he stressed that the aim was not to eliminate incentives.

“We are not saying that net metering consumers should provide us with electricity at the rates of the cheapest sources of electricity,” Leghari said. “These reforms are not a deterrent, but a step toward a better, balanced and sustainable system.”

He said the typical payback period for solar investments in Pakistan was around three years, provided that consumers use 40 percent of the electricity they generate.

Leghari also said the government was in discussions with the International Monetary Fund about the scheme but stressed “there is no direct financial pressure on us.”

In a post on social media platform X, formerly Twitter, Leghari said the government was reviewing all stakeholder proposals and would not take steps that harmed businesses.

“We strongly hope that any changes in these regulations will be in the best interest of all stakeholders, the national grid and the electricity consumers of Pakistan,” he said.

In January, Leghari called for a review of the net metering policy, saying it was becoming financially unsustainable. A government report from last year said the existing net metering framework had shifted a burden of Rs103 billion ($366 million) onto other electricity consumers in 2024.

Pakistan has set a goal of generating 60 percent of its electricity from renewable sources by 2030 and cutting projected carbon emissions by 50 percent. But the country remains far behind on those targets, despite growing solar adoption and abundant sunlight across most regions.

ISLAMABAD: Pakistan’s Railways Minister Hanif Abbasi and British High Commissioner Jane Marriott on Wednesday discussed bilateral cooperation between the two nations with a special focus on railways, state-run media reported.

Pakistan’s railway sector faces several challenges such as an aging infrastructure, outdated tracks, locomotives and signal systems. Poor maintenance and a lack of modern safety measures often contribute to train derailments and accidents. Notable tragedies include the 2005 Ghotki train disaster, which killed over 130 people and a 2021 train collision that left at least 65 people dead.

As opposed to that, the UK has one of the densest railway networks in Europe with almost all major towns and cities connected by rail.

“Pakistan and the United Kingdom have emphasized joint measures to further strengthen their bilateral trade and economic relations, with special focus on the railways sector,” state-run media reported following Abbasi’s meeting with Marriot in Islamabad.

State broadcaster Radio Pakistan said Abbasi called for “a comprehensive strategy” between Pakistan and the United Kingdom to develop and modernize the former’s railway sector.

“He said Pakistan is ready to fully benefit from UK’s expertise in modernizing the railways infrastructure in the country and improving performance of this sector,” Radio Pakistan said.

Abbasi said the two countries would continue to work together on mutual interest railways projects that will benefit their economies and improve public transportation.

Pakistan has recently attempted to improve its railway infrastructure to ensure economic growth and development.

In March, Pakistan and United Arab Emirates (UAE) officials agreed to expand bilateral cooperation between the two countries in the railways sector.

Abbasi had said Pakistan Railways is continuously working to improve its services through long-term agreements with domestic and international suppliers, emphasizing that Islamabad offers a business-friendly environment and presents significant opportunities for investors.