Pakistan revises solar net-metering buyback rate to ease burden on grid consumers

A worker carries a solar panel plate at a market in Lahore on June 12, 2024. (AFP/File)
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Updated 13 March 2025
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Pakistan revises solar net-metering buyback rate to ease burden on grid consumers

  • Economic Coordination Committee allows power regulatory authority to revise electricity buyback rate periodically
  • Committee says decision taken due to “significant increase” in solar consumers, financial burden on grid consumers

ISLAMABAD: Pakistan’s Economic Coordination Committee (ECC) on Thursday revised the buyback rate for solar net-metering electricity from Rs27 per unit to Rs10 per unit, saying the move was intended to ease the burden on grid consumers. 

The net-metering policy approved in 2017 allows homeowners and businesses to generate electricity using solar panels and export any excess to the national grid. In Pakistan, it is a billing system where consumers receive credits or monetary compensation for the surplus electricity they send to the grid. 
Pakistan’s energy ministry said in April 2024 that the subsidy burden due to the net-metering policy is being shared by the government, domestic and industrial electricity consumers for other affluent consumers who are capable of generating power from solar panels. 

The ECC met under Finance Minister Muhammad Aurangzeb to approve a set of amendments to the existing net-metering regulations, a press release from the Finance Division said. 

“As part of the approved changes, the ECC has revised the buyback rate from the National Average Power Purchase Price (NAPP) to Rs 10 per unit,” the Finance Division said. 

“Furthermore, the committee allowed the National Electric Power Regulatory Authority (NEPRA) to revise this buyback rate periodically, ensuring that the framework remains flexible and aligned with evolving market conditions.”

It added that the new framework would not apply to existing net-metered consumers who have a valid license, concurrence or agreement under the National Electric Power Regulatory Authority (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015.

“Any such agreements will remain effective until the expiration of the license or agreement, whichever occurs first,” it said, ensuring the rights and obligations of these consumers, including agreed-upon rates, will continue as per existing terms.

The statement said the ECC also approved an updated settlement mechanism, under which exported electricity units would be purchased at the new buyback rate of Rs10 per unit, while imported units would be billed at the applicable peak and off-peak rates, inclusive of taxes and surcharges.

The ECC said that these amendments were made after a record decline in solar panel prices that led to a sharp increase in the number of solar net-metering consumers.

“As of December 2024, solar net-metering consumers had transferred a burden of Rs 159 billion to grid consumers,” it said.

The statement also highlighted the need for regulatory reforms to ensure balance in the energy distribution system, noting that 80 percent of net-metering consumers are concentrated in nine major cities.

Pakistan has ideal climatic conditions for solar power generation, with most areas receiving over nine hours of sunlight daily. According to the World Bank, using just 0.071 percent of the country’s land for solar photovoltaic (solar PV) power could meet its electricity demand.

With a population of 241 million, Pakistan aims to transition to 60 percent renewable energy by 2030 and reduce projected emissions by 50 percent. Despite recent growth in solar power adoption, the country is still far from achieving these goals.


Saudi Arabia, other nations welcome news of India-Pakistan ceasefire

Updated 10 May 2025
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Saudi Arabia, other nations welcome news of India-Pakistan ceasefire

  • Pakistan appreciates Saudi Arabia’s positive role in promoting regional peace and stability
  • Western powers say ‘dialogue is key,’ hoping both sides to respect the ceasefire agreement

ISLAMABAD: Saudi Arabia, China, the United Arab Emirates, and several other countries on Saturday welcomed the ceasefire understanding between Pakistan and India, following a week of military escalation that raised fears of a full-blown war between the two South Asian neighbors.

The ceasefire, brokered with US support after missile and drone exchanges between the nuclear-armed neighbors, has drawn a wave of diplomatic endorsements after many countries called for restraint and renewed dialogue.

Pakistan has credited the international community for playing a constructive role in defusing tensions, while also emphasizing its own measured response to what it described as Indian aggression.

“Deputy Prime Minister/Foreign Minister, Senator Mohammad Ishaq Dar @MIshaqDar50, received a call from the Saudi Minister of State for Foreign Affairs, Adel Aljubeir @AdelAljubeir, who welcomed the ceasefire understanding between

Pakistan and India,” Pakistan’s foreign office said in a post on social media platform X.

“DPM appreciated Saudi Arabia’s positive and constructive role in promoting peace & security in South Asia,” it added.

Dar also spoke with Chinese Foreign Minister Wang Yi, briefing him on the regional situation following Indian attacks and Islamabad’s “carefully calibrated response.”

According to Pakistan’s foreign office, Wang acknowledged Pakistan’s restraint and described its actions as responsible under challenging circumstances.

China reaffirmed its support for Pakistan’s sovereignty and territorial integrity and pledged continued coordination.

The UAE also expressed support for the ceasefire.

In a separate call, UAE Deputy Prime Minister Sheikh Abdullah bin Zayed welcomed the development, and Dar commended the Gulf state’s diplomatic engagement in fostering regional peace.

Germany’s foreign office described the ceasefire as a “first, important step out of the escalation spiral” and stressed the importance of dialogue.

“Dialogue is key,” it said. “The German government has been in contact with both sides in the past days.”

Kaja Kallas, the EU High Representative for Foreign Affairs, said she had spoken with both Indian and Pakistani foreign ministers and called the truce a “vital step toward de-escalation.”

“All efforts must be made to ensure it is respected,” she wrote on X, reaffirming the EU’s commitment to peace, stability and counter-terrorism in the region.

The flare-up between Pakistan and India, one of the most serious in recent years, followed a deadly attack in Indian-administered Kashmir last month and escalated into missile strikes, drone attacks and cross-border fire over the past week.

The ceasefire, announced Saturday, has temporarily halted hostilities, with both sides trading blame for the conflict.


Pakistan, China, Afghanistan vow cooperation on security and economy at Kabul meeting

Updated 10 May 2025
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Pakistan, China, Afghanistan vow cooperation on security and economy at Kabul meeting

  • Representatives of the three countries met under a trilateral mechanism launched in 2017
  • They discussed the forthcoming foreign ministers’ conference expected to take place in Kabul

PESHAWAR: A trilateral meeting hosted by Afghanistan in Kabul on Saturday focused on economic and security outlook of the region, according to Pakistan’s special envoy Mohammad Sadiq, as the participants pledged to deepen cooperation in various fields.

The meeting marked the latest round of talks under the trilateral dialogue mechanism between Afghanistan, China and Pakistan that was launched in 2017 to promote political trust, counterterrorism coordination and economic integration.

Afghanistan’s acting foreign minister, Amir Khan Muttaqi, hosted the talks, which also included China’s special envoy Yue Xiaoyong.

“The first meeting of the Pakistan-China-Afghanistan trilateral in Kabul today... provided the occasion for convergence of views on economic and security cooperation as well as regional stability,” Sadiq, Pakistan’s special representative for Afghanistan, said in a post on social media platform X.

All three sides reviewed progress on commitments made during the last dialogue and agreed to convene the sixth round of foreign ministers’ meeting in Kabul at a future date, according to a report published by Afghanistan’s Ariana News.

The officials also discussed broader preparations for an upcoming meeting of foreign ministers from Afghanistan’s neighboring countries, and reaffirmed their intention to expand political and economic engagement.

Muttaqi highlighted the importance of strengthening bilateral and trilateral ties, while the Chinese and Pakistani envoys reiterated their commitment to good-neighborly relations based on mutual respect and non-interference.

China and Pakistan are among the few countries to maintain ongoing engagement with the Taliban-led government in Kabul, though neither formally recognizes it.

Both Beijing and Islamabad have called for stability in Afghanistan to enable cross-border connectivity and curb the threat of militant spillover.


Pakistan says ‘premature’ to speculate if ceasefire will lead to real peace with India

Updated 10 May 2025
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Pakistan says ‘premature’ to speculate if ceasefire will lead to real peace with India

  • Pakistani State Minister for Interior Talal Chaudhry tells Arab News “response would be harsh” if India defied ceasefire 
  • Indian Foreign Secretary Vikram Misri says armed forces had been given instructions to “deal strongly” with any violations

ISLAMABAD: Defense Minister Khawaja Asif said on Saturday it was premature to speculate if a US-brokered military ceasefire between Pakistan and India would lead to real peace, as fresh violence was reported on both sides of the de facto border between the two nuclear-armed nations, who vowed retaliation. 

Within hours of the truce announcement, violations were reported from the main cities of Indian-administered Kashmir, as well as in Azad Kashmir on the Pakistani side of the Line of Control, the de facto border that divides the disputed Kashmir region between India and Pakistan.

The reports came after Islamabad and India both announced a sudden stop to a conflict that had seemed to be spiraling alarmingly. The US said they had also agreed to hold talks on a broad range of issues at a neutral site.

Pakistani Minister of State for Interior Talal Chaudhry told Arab News, “the response would be harsh” if India defied the ceasefire agreement. 

Indian Foreign Secretary Vikram Misri said the armed forces had been given instructions to “deal strongly” with any violations.

“This is just the beginning, it’s a bit early to speculate,” Asif said in an interview to Geo News when asked if the ceasefire could open a path to real peace. 

“As time passes maybe these types of paths will emerge but at this point it would be premature to pin those kinds of hopes to the problem.”

He added: “When talks begin, maybe some way will be found.”

Earlier in the day, the Indian foreign secretary said the two countries’ military operations’ chiefs had spoken to each other and agreed that all fighting would stop at 5 p.m. Indian time (1130 GMT) without using the word “ceasefire.” The MO chiefs would next speak on May 12, he added. 

But within hours, Reuters said blasts were heard in Srinagar and Jammu in Indian-administered Kashmir and projectiles and flashes were seen in the night sky over Jammu, similar to the events of the previous evening.

Pakistani witnesses and local media channels also reported firing from India into Pakistan in Azad Kashmir.

“BITTER HISTORY”

The ceasefire announcement came after the Pakistan military said early on Saturday India had attacked three bases in Pakistan with missiles, after which it had targeted multiple bases in India in response, including a missile storage site in India’s north.

India said there was limited damage to equipment and personnel at air force stations in the Udhampur, Pathankot, Adampur and Bhuj areas. The military said there were several high-speed missile attacks on several air bases in Indian Punjab, and that India had responded to the attacks.

Saturday’s military confrontation, the worst fighting between the longstanding enemies in decades, followed days of daily clashing since Wednesday through drones and missiles and gunfighting on the Line of control. At least 50 have been killed on both sides.

The latest round of tensions were triggered by a militant attack in Indian-administered Kashmir that killed 26 people on April 22. New Delhi said Islamabad was involved, which denied the allegation and repeatedly said it was willing to participate in a transparent and credible inquiry.

Pakistan and India have a history of bitter relations, having fought two of their three wars over Kashmir, a region split between them, since gaining independence from the former British colonial rule in 1947.

Both nations acquired nuclear weapons in 1998.

– With inputs from Reuters


Pakistanis welcome ceasefire with India but caution against trusting New Delhi

Updated 10 May 2025
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Pakistanis welcome ceasefire with India but caution against trusting New Delhi

  • A trader in Karachi says no one wins in war, warning that conflicts only bring human suffering
  • A veterinarian in Islamabad warns India can behave unpredictably even within treaty frameworks

KARACHI/ISLAMABAD: People in Pakistan on Saturday welcomed the announcement of a ceasefire with India after heavy cross-border missile and drone exchange between the two countries, though some expressed skepticism about New Delhi’s willingness to uphold the truce.

The ceasefire brought an end to one of the most serious military standoffs between the two nuclear-armed neighbors in decades, triggered by a deadly attack in Indian-administered Kashmir last month that killed 26 tourists.

India blamed Pakistan for the incident and launched missile strikes on what it called “terrorist camps” in five Pakistani cities. Islamabad denied involvement and retaliated by targeting Indian military sites.

The hostilities escalated until Washington brokered a truce, announced Saturday by US President Donald Trump.

“Look, the ceasefire announcement has been beneficial for both countries,” said Abbas Raza, a trader in Karachi, while speaking to Arab News. “Who wins when there’s loss? No one wins in loss. People only suffer.”

Muhammad Shehbaz, a local businessman in the city, said Pakistan had exercised restraint for days despite repeated “Indian provocations.”

“India was pushing, trying to provoke Pakistan into escalating the conflict,” he said. “They kept at it, but Pakistan showed restraint again and again.”

“Then yesterday, when Pakistan carried out a retaliatory strike, they were shaken within three hours,” he continued. “They were brought to their knees. And today, they called in Trump and agreed to a ceasefire.”

Zubia Mehfooz, a woman visiting Karachi, said she had been unable to return to the United States, where her family lives, due to the airspace shutdown caused by the conflict.

“I was here for some work and got stuck,” she said. “I have a flight Monday morning. There’s never an issue from our [Pakistani] side. You know where the issue comes from. If the ceasefire holds, it’s a very good thing.”

But in Islamabad, some urged caution, citing past episodes.

“We don’t fully trust India’s statements,” said Muhammad Farhan Hameed, a veterinarian. “Past experiences have shown this. Many treaties have been signed before, but sometimes they behave unpredictably and break from what was agreed.”


US mission in Islamabad eases staff movement curbs after India-Pakistan ceasefire

Updated 10 May 2025
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US mission in Islamabad eases staff movement curbs after India-Pakistan ceasefire

  • The embassy upholds ‘Do Not Travel’ statue for areas near the eastern border
  • It also maintains a ‘Reconsider Travel’ advisory in the country more broadly

ISLAMABAD: The United States eased movement restrictions on its diplomatic personnel in Pakistan on Saturday, following a ceasefire agreement between India and Pakistan that brought a pause to days of cross-border military exchanges.
The conflict was sparked by a deadly attack in Indian-administered Kashmir last month that killed 26 tourists, with New Delhi blaming Pakistan for the incident despite Islamabad’s denial of the allegation.
India launched missile strikes on what it said were “terrorist camps,” prompting Pakistan to respond with attacks on Indian military targets.
A ceasefire brokered by Washington was announced Saturday afternoon by President Donald Trump, with Secretary of State Marco Rubio saying both sides had agreed to hold talks at a neutral venue.
“Movement restrictions on US government personnel in Islamabad, Karachi, and Lahore have been adjusted to allow travel within city limits,” the US mission said in a security alert.
However, it reiterated its “Do Not Travel” advisory for areas near the India-Pakistan border and the Line of Control, citing “terrorism” and the risk of “armed conflict.”
It also maintained a “Reconsider Travel” advisory for Pakistan more broadly, reflecting long-standing US concerns about militant violence and limited consular access in parts of the country.
Earlier this year, the US State Department had cited Pakistan’s deteriorating security conditions, especially in the Khyber Pakhtunkhwa and Balochistan provinces.
In its recent alert, the US embassy advised citizens in Pakistan to review their security plans and stay alert.
It noted that flight availability remained fluid in Pakistan, urging travelers to confirm schedules with their airlines.