Islamabad: Pakistan has given a written assurance to the International Monetary Fund regarding major changes in the current electricity subsidy system, under which a new mechanism will be introduced within the next eight months.
According to sources, the existing general subsidy for consumers using up to 200 electricity units will be abolished, while a targeted subsidy system will be implemented from January 2027.
Reports indicate that the new subsidy will be provided only to deserving consumers based on the data of the Benazir Income Support Programme, ensuring that financial assistance reaches only genuine beneficiaries.
Sources said the move aims to prevent misuse of subsidies, as under the current system some households install two or three electricity meters and keep the consumption of each meter below 200 units to maximize subsidy benefits.
Officials stated that the new system will discourage such practices and make electricity subsidies more transparent and effective.
