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Government Rejects Reports on Electricity Subsidy Withdrawal for Low-Usage Consumers

Government Rejects Reports on Electricity Subsidy Withdrawal for Low-Usage Consumers

ISLAMABAD: The Ministry of Energy has rejected media reports claiming changes in the electricity subsidy policy. Officials called the reports baseless and misleading.

The ministry clarified that no proposal exists to end relief for domestic users consuming up to 200 units of electricity per month. It said the government remains committed to supporting low-income households.

According to the spokesperson, there is no plan to withdraw or modify the current subsidy structure. Households using limited electricity will continue to receive existing benefits.

The clarification comes after reports suggested a possible policy shift under an IMF-linked climate financing program. Those reports claimed subsidies might be phased out in the future.

However, officials strongly denied any immediate or approved change in the electricity subsidy system. They said no such proposal is currently under consideration.

The ministry emphasized that protecting vulnerable consumers is a top priority. It said relief for low-usage households will remain in place.

Sources had earlier speculated that subsidized users receive up to Rs5,000 monthly relief. This keeps average electricity bills around Rs2,000 for eligible consumers.

If removed, estimates suggested bills could rise significantly. Some projections indicated increases up to Rs7,000 for affected households.

The ministry, however, rejected any move that could impact low-consumption users. It confirmed that stability in electricity pricing for these groups will continue.

In a separate development, power tariffs may still face adjustments under fuel cost mechanisms. Consumers across Pakistan could see a per-unit increase in electricity charges.

The Central Power Purchasing Agency has requested a tariff hike. The proposal has been submitted to the National Electric Power Regulatory Authority for review.

A public hearing on the matter is scheduled for June 2. The regulator will decide whether to approve changes in electricity prices.

According to official data, Pakistan generated 9.50 billion units of electricity in April. The average production cost was reported at Rs9.42 per unit.

Authorities supplied 9.295 billion units to distribution companies during the same period. Officials said pricing decisions are reviewed monthly based on fuel costs.

In other news read more about Electricity Prices May Increase by Rs1.72 Per Unit in Pakistan

Overall, the ministry reiterated that low-income households will remain protected from any reduction in electricity subsidies.

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