The energy minister has hit back at the National Electric Power Regulatory Authority (Nepra) over a report on the performance of the power sector and circular debt reduction figures, terming the regulator’s findings misleading.

Expressing serious concerns over the Nepra report, Sardar Awais Leghari rejected the figures relating to circular debt and criticised the authority for its “failure to present the true picture” of Pakistan’s power sector.

“The report is based on incomplete and inaccurate data, which has led to widespread misunderstandings,” Leghari told a press conference on Sunday. He noted that Nepra had ignored the achievement of targets set by the government for the power sector.

Leghari also rejected Nepra’s claim regarding a Rs780 billion reduction in circular debt, calling it misleading. “We have formally shared all these figures with Nepra. Therefore, its apparent ignorance is surprising,” he said.

The reduction, he explained, included Rs193 billion due to lower Distribution Companies (DISCOs) losses, Rs260 billion through successful negotiations with Independent Power Producers (IPPs), and around Rs300 billion from improvements in macroeconomic indicators.

“Circular debt has not increased; instead, for the first time, a significant reduction is recorded,” Leghari emphasised. “The circular debt has declined from Rs2.4 trillion to Rs1.6 trillion. The government is actively implementing a six-year plan aimed at the complete elimination of the circular debt.”

The minister said Nepra failed to recognise improvements in recoveries compared to the previous year. During fiscal year 2025, DISCO recoveries improved from 92.4% to 96.6%. The recovery gap was reduced from Rs315 billion to Rs132 billion, reflecting a decrease of Rs183 billion, he added.

He further stated that in the first six months (July to December) of fiscal 2026, recoveries continued to improve, with an increase of Rs43 billion over the same period last year. He reiterated the government’s commitment to gradually reduce inefficiencies within DISCOs.

“An effective mechanism has been implemented to recover dues from government departments, under which 25% recoveries are being made through the federal adjuster against verified bills,” the minister stated.

About providing relief to consumers, Leghari said the national average electricity price has declined. “In March 2024, the average price stood at Rs53.04 per unit, which dropped to Rs42.27 per unit by December 2025,” he claimed.

The energy minister acknowledged that electricity demand has declined in the country but attributed it to various economic factors that led consumers to shift towards alternative energy sources.

However, Leghari continued, the government remains engaged in reforms to further reduce electricity prices, including three-year incentive packages, tariff renegotiations, and debt refinancing.

Criticising Nepra’s stance regarding the Debt Service Surcharge (DSS), the minister stated that the regulator’s position was contrary to facts. He stressed that the surcharge has existed for many years and was previously used only for interest payments, while the principal debt remained intact.

“Our government ensured that the surcharge is now being used for full repayment of existing debt, which will be completely paid off within five to six years,” he said, adding that arrangements have been made to eventually remove the surcharge from electricity bills.

He also rejected Nepra’s decision to absolve K-Electric of responsibility for the increase in circular debt, calling it “entirely incorrect.” The K-Electric, he said, contributed significantly to the problem by failing to make timely payments.

“By June 2023, K-Electric’s non-payments had added Rs640 billion to circular debt, while its outstanding liabilities exceeded Rs300 billion as of November 30, 2025,” Leghari said. “Nepra also set lenient regulatory targets for K-Electric.”

The minister revealed that the utility had received more than Rs600 billion in subsidies over the past five years, placing an additional burden on the national exchequer. He added that the DSS was imposed on K-Electric and other DISCOs due to their role in increasing the circular debt.

The minister further criticised Nepra for historically approving power generation planning without comprehensive studies, stating that the regulator bears major responsibility for the current expensive power generation mix.

He said the present government, for the first time, took merit-based decisions and cancelled 8,000MW of future costly power projects, resulting in estimated savings of over $17 billion for the country. “Nepra should have appreciated these efforts,” he remarked.

On load management, Leghari said Nepra’s decision to exclude commercial-losses-based load-shedding from the regulatory framework was incorrect. He clarified that load management based on commercial losses was approved under the national power plan.

“The government is carrying out extensive and comprehensive digitisation of the power sector, which will enable load management at the transformer level. Nepra’s information regarding smart meters is also incomplete. So far, 1.6 million meters have been installed, with 90% communication availability.”

He added that Nepra’s data on meter reading and billing was also insufficient. Electricity consumers have now been given the option of self-meter reading through the “Apna Meter, Apni Reading” mobile application, which is available to all users.

Leghari said Nepra should have appreciated the government for refunding Rs40 billion to electricity consumers under billing adjustments.

He stressed that DISCO inefficiencies are neither being passed on to consumers nor being added to circular debt. “The government covers these inefficiencies from its own resources.”