The Government of Pakistan has decided to eliminate the category of protected power consumers by 2027, according to Secretary of the Power Division Dr. Fakhre Alam Irfan.
Speaking during a Public Accounts Committee meeting chaired by MNA Junaid Akbar Khan, Dr. Irfan explained that this move is part of broader reforms aimed at rationalizing energy subsidies and addressing structural inefficiencies.
Protected consumers—defined as those using up to 200 units of electricity per month—have increased significantly in recent years, rising from 11 million to 18 million. These consumers now make up 58% of the total user base and currently benefit from substantial government subsidies, with rates ranging between 60% and 70%.
Dr. Irfan stated that the government is gradually rolling back these subsidies, with the aim of fully eliminating them over the next two and a half years. “Within the next 18 months, we expect to resolve the issue of subsidies for users consuming up to 200 units,” he said.
In addition to subsidy reform, the government is tackling the issue of surplus electricity in the national grid.
Two proposals are under review: offering discounted power to existing industries and supplying affordable electricity to new industrial units.
However, both proposals are subject to approval by the International Monetary Fund (IMF), which plays a central role in Pakistan’s policy framework due to ongoing financial agreements.
Dr. Irfan said that no major energy-related decision is taken without IMF consultation. Once endorsed by the IMF, the proposals will be forwarded to the federal cabinet for final approval.
