LAHORE: The government is planning to phase out electricity subsidy for consumers using up to 200 units per month as part of a broader shift towards a targeted subsidy system, according to sources in the Ministry of Finance.
Officials said that under the new policy framework, the existing general subsidy on electricity is expected to be abolished, and from January 1, 2027, only targeted subsidies will be provided to eligible low-income households.
Sources revealed that the decision comes in line with conditions set by the International Monetary Fund (IMF), aiming to replace blanket subsidies with a more focused support mechanism for deserving and low-income segments of society.
Under the proposed system, subsidies on electricity, gas, and essential commodities such as flour will only be available to individuals earning between Rs20,000 and Rs30,000 per month.
The new mechanism will reportedly involve linking consumer data with the National Database and Registration Authority (NADRA), along with a mandatory QR code system to verify financial eligibility.
According to officials, only those registered under the Benazir Income Support Programme (BISP) or meeting strict poverty criteria will qualify for relief under the 200-unit electricity subsidy category once the reforms are implemented.
