Pakistan energy policy dominated the National Assembly session on Tuesday as Defence Minister Khawaja Muhammad Asif addressed aircraft-related allegations and outlined the government’s long-term energy direction. He rejected claims about special treatment in official aircraft use and clarified the government’s position while lawmakers debated economic challenges and policy priorities.
Aircraft Allegations Spark Political Debate
Khawaja Asif firmly rejected claims that Punjab’s Chief Minister was receiving special treatment through the use of an official aircraft. He clarified that all four provincial chief ministers have access to official planes, stressing that the matter was being unnecessarily politicised.
He further explained that the aircraft associated with the Prime Minister had not been newly purchased. Instead, the existing Airbus 320 had undergone upgrades. According to him, accusations suggesting otherwise were misleading and lacked factual basis.
The minister urged political actors to avoid making unfounded allegations. He emphasised that such narratives create confusion among the public and distract from more urgent governance matters.
Shift Towards Sustainable Energy Urged
Turning to Pakistan’s energy challenges, the defence minister underscored the need for a comprehensive and long-term energy policy. He advocated for a transition towards local and renewable resources, particularly solar energy, to ensure both energy security and economic stability.
Responding to concerns over changes in net metering policies and the proposed 18 percent tax on solar panels, Asif acknowledged the difficulties faced by solar consumers. However, he pointed out that existing agreements in the power sector restrict the government’s ability to introduce rapid reforms.
He stressed that Pakistan must gradually shift its energy mix toward affordable and sustainable sources. Solar power and other low-cost alternatives, he noted, are essential for reducing dependence on expensive imported fuels.
Capacity Payments Remain Major Burden
One of the most critical issues highlighted during the session was the ongoing burden of capacity payments. These payments require the government to compensate power producers even when electricity is not consumed.
Asif admitted that although the government has attempted to renegotiate these agreements, the relief achieved so far remains limited. The scale of financial obligations continues to strain national resources.
Despite these challenges, he assured lawmakers that the government is actively exploring options to reduce costs. The focus remains on restructuring the energy sector and easing the financial pressure on the economy over time.
Government Defends Economic and Fuel Policies
Separately, PML-N leader Saira Afzal Tarar defended the government’s handling of the recent petroleum crisis. She praised the leadership of Prime Minister Shehbaz Sharif and his cabinet for managing the situation under difficult global conditions.
Tarar acknowledged that inflation continues to impact citizens but urged critics to consider global realities. She noted that many countries are facing even more severe shortages of food and energy. According to her, the recent increase in fuel prices was driven by unprecedented international factors rather than domestic policy failures.
Meanwhile, Minister of State for Finance Bilal Azhar Kayani provided an update on the country’s economic outlook. He informed the assembly that the government is focused on maintaining economic stability while meeting key fiscal targets.
He explained that lower inflation and fluctuations in GDP growth have affected tax revenue collection in the current fiscal year. Despite this, the government remains committed to achieving a primary budget surplus under its programme with the International Monetary Fund.
Kayani highlighted several enforcement measures aimed at improving tax collection. These include digital invoicing systems and camera-based monitoring in sectors such as cement and sugar. He added that efforts are ongoing to broaden the tax base and enhance transparency.
Balancing Reform with Public Relief
The finance minister also noted that global geopolitical tensions have influenced Pakistan’s economic indicators. As a result, the government is adopting a cautious approach to balance fiscal discipline with public relief.
He pointed out that, despite limited financial space, the government has taken steps to protect citizens. These include reducing the petroleum levy and temporarily absorbing fuel price increases to ease the burden on consumers.