The Power Division has finalized a plan to provide electricity subsidies only to eligible consumers through the Benazir Income Support Program, as part of upcoming discussions with the International Monetary Fund (IMF).
Under the proposed framework, electricity consumers will be charged the full cost of power, while subsidies will be limited to low-income households identified through BISP data, based on monthly income levels.
The government aims to eliminate cross-subsidies so that no additional financial burden is shifted onto other consumers or sectors. Instead, only budgeted subsidies will be provided to deserving users.
The plan will be presented to the IMF delegation along with recent tariff restructuring measures, as Pakistan continues efforts to reform its energy sector and improve fiscal sustainability.
In the gas sector, the Petroleum Division is also planning to phase out cross subsidies, with current support estimated at Rs. 225 billion. Future subsidies are expected to be incorporated into the federal budget framework.
Authorities have already started coordinating with BISP to collect and integrate consumer data.
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IMF should check the authenticity of the BISP data for geniune low income family.
This is going to be the final nail in the coffin of this relentlessly anti poor, extractive and pathetic government.
Full cost of electricity means units charged at 45-55 rs. Poor people cant even pay this rate. Brace for absolute chaos in the country..