ISLAMABAD – Pakistan is mulling the change the way electricity subsidies are provided to protected consumers who use up to 200 units per month.
Reports said the government and the International Monetary Fund (IMF) agreed to move toward a targeted system for low-income consumers.
Under the planned arrangement, electricity subsidies will increasingly be linked to the Benazir Income Support Programme (BISP), meaning that assistance will be directed toward consumers identified through the social protection system rather than being broadly available through the existing tariff structure.
Consumers registered with BISP will be the target beneficiaries of the proposed subsidy for households consuming up to 200 units of electricity.
The new mechanism is expected to come into effect from January 2027, following the introduction of a revised base electricity tariff.
The move is part of a wider reform agreed with the IMF to replace the existing budgeted tariff differential subsidy and cross-subsidy arrangements with a targeted subsidy framework for poorer households.
What is changing from January 2027?
The government is working toward a system in which:
BISP-registered low-income households will be targeted for electricity subsidy support.
Households consuming up to 200 units will be covered under the proposed targeted assistance.
The subsidy will be provided through a BISP-based mechanism rather than the existing broad tariff subsidy system.
The revised system is expected to begin in January 2027 after the new base tariff is introduced.
Power distribution companies have already submitted petitions seeking base tariff adjustments, indicating preparations for the transition.
