In a significant policy shift, Pakistan’s Power Minister Awais Leghari has announced the abolition of free electricity units previously granted to power sector employees. The decision, described as a major reform, follows approval from the Lahore High Court and marks a turning point in the country’s energy governance.

The minister shared the development on social platform X, confirming that the federal government has formally ended the long-standing facility. This benefit had been a subject of public debate for years, often criticized for placing additional financial burden on the national exchequer.

According to Leghari, the court accepted a petition filed by the Power Division, clearing legal hurdles for the policy change. He termed the move “historic,” noting that such a step had not been taken before in Pakistan’s energy sector.

The reform has been implemented under the leadership of Prime Minister Shehbaz Sharif, signaling the government’s intent to introduce structural changes aimed at improving financial discipline and transparency within state institutions.

Ending free electricity units is expected to reduce subsidies and help address inefficiencies in the power sector. Analysts believe the move could contribute to broader efforts to control circular debt and stabilize the energy market.

For years, the provision of complimentary electricity to employees had drawn criticism from both economic experts and the public, who viewed it as an unsustainable perk amid rising power tariffs and fiscal constraints.

With the court’s backing, the government now has a clear path to enforce the decision across the sector. The development is likely to be closely watched by stakeholders, including policymakers, industry experts, and consumers, as its long-term impact unfolds.

This decision underscores a growing focus on reforms within Pakistan’s energy sector, as authorities seek to balance financial sustainability with equitable resource distribution.