Islamabad: The government has initiated preparations for a significant overhaul of the country’s electricity and gas tariff system, aiming to introduce fundamental changes in the existing pricing structure.
According to details, authorities are considering revising the current mechanism for determining electricity and gas rates and are preparing to introduce a new slab system based on consumers’ income rather than their level of usage. The move is intended to make the subsidy framework more targeted and equitable.
Under the proposed model, subsidies for domestic consumers will be determined according to household income, with the objective of providing greater relief to low-income segments and ensuring more efficient allocation of resources. These reforms are being finalized in light of commitments made with the International Monetary Fund, with a focus on strengthening financial discipline in the energy sector.
Earlier, reports had indicated that the federal government had decided in principle to reduce the base electricity tariff and revise fixed charges, describing the step as part of broader reforms in the energy sector.
