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Govt Unveils New Rs. 487 Billion Power Subsidy Plan Despite IMF Warnings

The Ministry of Energy has outlined a new government strategy to provide Rs. 487 billion in subsidies for power sector consumers, according to official documents seen by ProPakistani.

The subsidy will be integrated with the social protection program, with beneficiaries determined using data from the Benazir Income Support Program (BISP).

This comes despite past warnings by the International Monetary Fund to withdraw all subsidies for the release of funds under the recently agreed $7 billion bailout program.

The document revealed that lifeline consumers will receive a dedicated Rs. 20 billion subsidy. Protected consumers using up to 200 units are estimated to receive Rs. 380 billion, while those consuming up to 300 units will be granted Rs. 160 billion in subsidies. In contrast, the government plans to eliminate Rs. 23 billion in subsidies for consumers using between 300 and 700 units.

An additional Rs. 50 billion in subsidies will be withdrawn from households consuming more than 700 units, the document added.



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