Govt likely to end electricity subsidy for 200-unit consumers

KARACHI: Pakistan’s authorities are, apparently, getting ready to slowly shut down the long-running electricity subsidy for consumers who use up to 200 units every month, as part of a big rework toward more targeted welfare, sources said.

In the suggested approach, the older blanket subsidy for home users is expected to finish fully, while a new targeted subsidy structure might start from January 1, 2027.

Officials claim the updated setup would dish out help only to those who are truly low-income and considered deserving households, instead of giving relief to everyone across the board.

This move is, reportedly, being carried out alongside the requirements from the International Monetary Fund (IMF), which has urged Pakistan to swap universal subsidies for support that’s specifically aimed at vulnerable groups.

Media reports also suggest that electricity, gas, and some everyday essentials like flour may not be offered to the general public anymore.

Rather, benefits would be limited to people earning between Rs20,000 and Rs30,000 per month. To keep verification tight, authorities are planning to bring in a digital monitoring system that links electricity consumer details with the National Database and Registration Authority (NADRA).

They also noted that a QR code-based check is under consideration to verify income data and eligibility before any subsidy is actually released.

Under the new rules, relief for power would be available only to families registered with the Benazir Income Support Programme (BISP) or to individuals who meet very strict poverty standards.

Overall, these reforms are being seen as among the biggest changes to Pakistan’s subsidy setup in recent years, and they could quite heavily affect how millions of households get utility help later on.