The Power Division has prepared a comprehensive plan to reform electricity subsidies, under which consumers will gradually be charged the full price of electricity, while only eligible households will receive targeted support through the Benazir Income Support Programme (BISP). The proposed reforms will also be shared with the International Monetary Fund (IMF) as part of ongoing discussions on tariff restructuring and fiscal discipline.

According to media reports, future policy will require most consumers to pay the actual cost of electricity. Subsidies will no longer be broadly applied. Instead, only budgeted subsidies will be provided to eligible consumers identified through BISP data. Officials say the division has already started collecting and verifying consumer data in collaboration with BISP to ensure that support reaches deserving households. 

The Power Division plans to brief the IMF on the recent tariff restructuring and the new subsidy framework. Sources said the move is aimed at improving transparency and reducing financial strain on the power sector. 

Credit: Independent News Pakistan (INP)