Bad news for electricity consumers using up to 200 units per month

ISLAMABAD – The federal government has decided to discontinue the subsidy for households consuming up to 200 units of electricity per month in order to meet the conditions of the International Monetary Fund (IMF). Reports said the Pakistan has assured the International Monetary Fund (IMF) that it will overhaul the current electricity subsidy system, introducing a targeted subsidy program by January 2027. Under the new plan, the general subsidy replaced with support aimed only at eligible consumers. Subsidy via BISP The targeted subsidies will be distributed using data from the Benazir Income Support Program (BISP), reducing the misuse of subsidies under the current system. The government is coordinating with the National Socio-Economic Registry (NSER) to link electricity consumers to the subsidy mechanism, with support from the World Bank. An external firm will also be engaged to ensure effective subsidy disbursement. Action Against Multiple Meter Abuse Reports indicated that multiple households currently install two or three electricity meters to keep individual meter consumption under 200 units, maximizing subsidy benefits. The new system aims to discourage such practices. Separately, the Punjab government’s e-Aabiana system, which manages irrigation water charges, is set to expand to Sindh, Khyber Pakhtunkhwa, and Balochistan in the next fiscal year. High-level sources confirmed that Pakistan is close to receiving the second tranche of $200 million under the Pakistan Resilience and Sustainability Facility (RSF). The IMF’s Executive Board will review and approve the installment in Washington on May 8, 2026.