According to Ministry of Finance sources, the government is considering gradually ending the general subsidy provided to electricity consumers who use up to 200 units. After January 1, 2027, a system of “targeted subsidies” is expected to be implemented across the country.
According to sources, this significant decision is being made in light of International Monetary Fund (IMF) conditions and ongoing economic reforms, which aims to restrict subsidies to low-income and deserving people only. After July 1, a clear government policy on this matter is expected.
According to Ministry of Finance sources, only families earning between Rs. 20,000 and Rs. 30,000 per month will be eligible for electricity, gas, and grain subsidies under the proposed new system.
According to the sources, consumer data will be connected to NADRA in order to guarantee transparency, and a proposal to require “QR code” registration for all consumers is also under consideration. The candidates’ income and financial status will be checked using this system.
It was further stated that only consumers who are registered in the Benazir Income Support Programme (BISP) or who satisfy its eligibility requirements will be eligible for discounted subsidies.
The government’s subsidy expenditures might drop significantly if this strategy is put into execution, according to economic experts, but there are concerns that it might also have a negative financial impact on the middle class.
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