The Power Division has finalized a future subsidy framework and will brief an International Monetary Fund (IMF) delegation on recent tariff restructuring and the proposed targeted subsidy mechanism.
Sources in the Power Division said that, under the new plan, electricity subsidies will only be provided to deserving consumers through the Benazir Income Support Programme. Data obtained from BISP will be used to assess monthly household income and determine eligibility for support.
Officials confirmed that the Power Division has initiated data-sharing arrangements with BISP to identify eligible beneficiaries. Under the proposed model, consumers will be charged the full cost of electricity, while only budgeted subsidies will be extended to low-income households. The plan aims to eliminate cross-subsidies and avoid placing additional financial burdens on other consumer categories or sectors.
Meanwhile, sources in the Petroleum Division said that cross-subsidies in the gas sector will also be phased out. The existing cross-subsidy of Rs225 billion in the gas sector is expected to be incorporated into the upcoming federal budget as part of broader fiscal reforms.
The briefing to the International Monetary Fund is expected to focus on structural reforms in the energy sector, subsidy rationalization, and measures to ensure financial sustainability.
