The International Monetary Fund is not permitting Pakistan to introduce discounted electricity rates during specific hours, a proposal the government has been negotiating for months in an effort to stimulate power consumption and optimize grid utilization. Federal Minister for Energy Owais Leghari disclosed the lender’s resistance while addressing the Battery Storage Flexibility 2026 Conference in Islamabad.
Negotiations Stall on Off-Peak Pricing
Leghari stated that the government firmly believes time-based discounted tariffs could significantly increase electricity usage, particularly during periods of low demand. He pointed to the success of an Australian utility that dramatically boosted sales after implementing a similar pricing mechanism. Despite the impasse, the minister expressed resolve, confirming that the government will continue its diplomatic push to convince the IMF to approve the proposal.
“We are implementing major energy sector reforms and will present all relevant facts to the IMF to secure its support,” Leghari said. He added that the country’s first comprehensive energy plan is on track to be unveiled by April next year.
Renewable Shift and Battery Storage Goals
The energy minister highlighted a fundamental shift in how consumers will interact with the grid, noting that households will increasingly store electricity generated from rooftop solar systems for nighttime use. He observed that daytime electricity supply has already become relatively stable due to the greater availability of solar power.
Clean energy now accounts for roughly 55 percent of Pakistan’s electricity generation, with an ambitious government target to raise that share to 90 percent by 2035. Leghari stressed that reaching this goal is impossible through solar and wind power alone, emphasizing that battery energy storage will play a critical role in balancing the national grid and improving energy reliability.
Building a Domestic Battery Industry
Moving beyond simple adoption, the government is prioritizing the development of a local battery energy storage industry. Rather than depending on imports, Pakistan plans to promote domestic manufacturing, engineering, system integration, and battery management software development. This strategy aims to strengthen the country’s clean energy infrastructure and reduce external dependencies.
