Pakistan is preparing to introduce a major change in its welfare and utility support system. According to sources in the Ministry of Finance, the government plans to gradually end the existing Electricity Subsidy for domestic consumers using up to 200 units per month.
The current subsidy system provides relief to millions of households across the country. However, officials said the broad-based Electricity Subsidy will likely be withdrawn completely under a new policy framework being developed with support from international financial institutions.
Under the proposed plan, only low-income and deserving families will continue receiving assistance. The new targeted subsidy system is expected to become effective from January 1, 2027.
Sources said the decision is linked to conditions set by the International Monetary Fund (IMF). The IMF has repeatedly urged Pakistan to reduce universal subsidies and focus financial support on vulnerable groups only.
Officials revealed that subsidies on electricity, gas, and essential food items may no longer be available to the general public. Instead, relief will be limited to households earning between Rs20,000 and Rs30,000 per month.
The government is also preparing a strict verification process to ensure only eligible citizens receive benefits. Authorities are expected to connect electricity consumer records with data from the National Database and Registration Authority (NADRA).
In addition, a QR code-based verification system may also be introduced. This digital system will help officials confirm the income and eligibility status of consumers before providing support.
According to officials, families registered under the Benazir Income Support Programme (BISP) are likely to remain eligible for the Electricity Subsidy under the new policy. People meeting poverty assessment standards may also qualify for assistance.
The planned reforms could significantly affect millions of consumers who currently benefit from utility relief. Experts believe the shift marks one of the biggest changes in Pakistan’s subsidy structure in recent years.
Government officials said the aim is to reduce financial pressure on the national budget while ensuring support reaches only deserving households. However, the move may also increase concerns among middle-income families already struggling with rising electricity bills and inflation.
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Further details regarding the implementation process are expected to be announced in the coming months.
