Authorities in Pakistan are preparing to gradually abolish the long running electricity subsidy for consumers using up to 200 units per month as part of a major shift toward a targeted welfare system, media report said.
Under the proposed plan, the existing blanket subsidy for domestic consumers is expected to end completely, while a new targeted subsidy framework will likely be introduced from January 1, 2027.
Officials said the revised system would provide financial assistance only to genuinely low-income and deserving households instead of offering relief to all consumers.
The move is reportedly being implemented in line with conditions set by the International Monetary Fund (IMF), which has called for replacing universal subsidies with focused support for vulnerable groups.
According to media reports, subsidies on electricity, gas and essential items such as flour may no longer be available to the general public. Instead, relief will be restricted to people earning between Rs20,000 and Rs30,000 per month.
To ensure strict verification, authorities are planning to introduce a digital monitoring system linking electricity consumer data with the National Database and Registration Authority (NADRA).
Officials also revealed that a QR code-based verification mechanism is under consideration to confirm income details and eligibility before subsidies are provided.
Under the new system, only families registered with the Benazir Income Support Programme (BISP) or individuals meeting strict poverty criteria would qualify for electricity relief.
The proposed reforms are being viewed as one of the biggest changes to Pakistan’s subsidy structure in recent years and could significantly impact how millions of households receive utility support in the future.
Register through code
Earlier, a spokesperson of the Power Division said that electricity companies are now adding special codes to bills. Consumers will have to scan the code and complete online registration from it.
According to the reports, this process will help in identifying eligible families more accurately. It will also make sure that subsidies are being given only to low-income and low-use electricity consumers.
The Ministry of Energy has also said that subsidies are not being removed. It said the new system is only to improve transparency and management.
Officials also said that this is a monitoring system. It will help reduce errors and prevent misuse of funds. They added that public money should only go to those who truly need it.
Also read: View all details of electricity subsidy on your monthly bill easily: see how
