In an interesting development, under the IMF programme, the government might be introducing a targeted subsidy for electricity and gas for a certain type of consumer.
In a conversation with The Pakistan Connect, the Journalist, Mehtab Haider, revealed that a targeted subsidy for electricity and gas might be introduced.
According to him, under the IMF programme, the government might replace the existing system. Currently, the criteria for providing a subsidy are based on consumption.
The major difference in the targeted subsidy that might be introduced is that the subsidy for electricity and gas will not be based on the consumption of electricity by individual consumers.
The targeted subsidy will be provided through the Benazir Income Support Programme (BISP) mechanism. All those who are beneficiaries of BISP will be subsidised.
The beneficiaries of BISP will receive targeted money in their accounts for the first 200 units. This means that everyone will not receive subsidised rates on the first 200 units, only BISP beneficiaries.
In other news, Pakistan’s economic reforms under its current IMF programme have helped bring stability and restore confidence, according to the International Monetary Fund.
IMF has pointed out that Pakistan now has better fiscal management and stronger external accounts.
Julie Kozack, IMF director of communications, speaking at a media briefing, said under the Extended Fund Facility, the policy steps of Pakistan have started to show results.
She further added that the fiscal performance of Pakistan has now been strong. The country even recorded a primary surplus of 1.3 percent of GDP in the fiscal year 2025.
The surplus was in line with the programme targets.
