In a significant policy shift, the Power Division of Pakistan has finalized a plan to limit electricity subsidies exclusively to low-income households identified through the Benazir Income Support Program (BISP). This decision is part of ongoing discussions with the International Monetary Fund (IMF) regarding energy sector reforms. The government aims to eliminate cross-subsidies, which currently burden certain consumer groups with higher tariffs to support others. As a result, most consumers will pay the full cost of electricity, while targeted subsidies will be budgeted for deserving users only. According to ProPakistani, "the government aims to eliminate cross-subsidies so that no additional financial burden is shifted onto other consumers or sectors." The proposed changes are expected to be presented to the IMF delegation during their visit scheduled for February 25, 2026, which will assess Pakistan's economic performance and compliance with reform targets.
ECONOMY
Pakistan Electricity Subsidies for Low-Income Families via BISP

Pakistan's Power Division plans to limit electricity subsidies to low-income households via the BISP, aiming to eliminate cross-subsidies and improve financial sustainability in energy reforms.
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TechJuice
Updated 7h agoPR
ProPakistani
Updated 8h agoKH