The federal government is moving ahead with plans to substantial reform Pakistan’s electricity and gas pricing structure, aiming to shift the burden of subsidies from consumption levels to household income.
The proposed changes, being finalized in consultation with the International Monetary Fund (IMF), are expected to reshape how energy costs and relief measures are calculated across the country.
The government has begun preparations for a major overhaul of the country’s electricity and gas tariff system.
According to details, the new plan will replace the existing consumption-based slab system with one based on income levels.
Under the proposed model, subsidies will be determined according to household income rather than the amount of energy used. These reforms are being finalized in line with commitments made to the International Monetary Fund (IMF).
Earlier, it was reported that the federal government had decided to reduce the base electricity tariff and revise fixed charges.
Last week, the government announced massive relief for industrial sector. Under the revised rates, set to take effect from February 2026, factories and businesses will receive up to Rs4.58 per unit cut.
The financial impact of this relief will be borne by domestic consumers through new and increased fixed charges.
Protected consumers using up to 100 units per month have been exempted from the Rs200 fixed charge.
Under the revised structure, around 9.9 million consumers using less than 200 units will pay a Rs200 fixed monthly charge, while over 6.1 million protected-category consumers using up to 200 units will face a Rs300 charge.
