The federal government is preparing a major overhaul of electricity and gas tariffs by shifting from usage-based slabs to an income-based pricing system, in line with ongoing reforms tied to the IMF program.
Under the proposed model, subsidies will be determined based on household income rather than consumption levels, marking a significant structural change in how energy prices are set.
Officials said the reform is being finalized as part of commitments made under the IMF’s Extended Fund Facility, which requires Pakistan to restructure its energy sector and reduce inefficiencies.
The plan is expected to replace the current system, where tariffs are linked to the number of units consumed. The new approach will introduce a mechanism to assess household income and allocate subsidies accordingly, potentially integrating with existing social protection systems.
This is intended to ensure that only deserving consumers receive financial support, while higher-income households pay closer to actual energy costs.
Pakistan is already in discussions with the IMF on revising electricity tariffs, with the Fund emphasizing that any changes should not burden lower and middle-income groups.
The reform agenda also includes reducing cross-subsidies and addressing circular debt in the power sector, which has been a long-standing challenge for the economy.
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yr….ya kin gado key hath char gye hen hum bhae….what a shame, what a shame to those who use to sport them…
Gaday ni kutay Kaho Bhai Kutay
Sure, if the government feels this needs to be done then the net assets of an individual should be considered. A rat-shit corrupt minister with 15 cars and 5 houses in Islamabad’s F sectors or Lahore’s DHAs should pay more than 99% of the population. Pathetic.
Fake news. No one is going to allow this.
Easy . Reduce income tax to 0 first
All politicians should be targeted first, burden should be on them.
They will exclude themselves as gov employees
Only salaried class will be effected. Congratulations to them.
Rest have more reason to increase undocumented incomes.
So if a 3 person household has a net income of 300k and a 6 person household has a net income of 300k …. Are they going to be taxed similarly or different? Because if similarly then this is an absolute garbage of a policy intended to create a disadvantage for large families.
They have a similar policy in Europe but then they recalculate the financial score for each family based on their assets, number of dependents, area they live in, income, etc …
Only salaried class mey be correctly gauged in scale + businessmen who legally exposed their business.
Black business will remain unsealed, as a result there will be no justice.
What rubbish !!! Is it a utility bill or another form of income tax ???
I fully support this move. In fact, solar panels should be subsidized for lower to middle income groups and all rich individuals should be banned from purchasing solar panels. They should be made to pay for expensive electricity. Any person earning a minimum income of 2 lakhs per month should be classified as a rich individuals and should be slapped with a 50 percent income tax, that’s in addition to the tax that he/she will pay for electricity. Freelancers and content creators should also be slapped with 90% tax from their incomes. This will ensure that pakistan receives enough foreign exchange. Also expat Pakistanis be taxed 50 percent of the rental income of their properties owned abroad, whether these properties have been rented or not, should they wish keep their NICOP cards .Insha’Allah, everything will turn out to be just fine.
How the relevant quarters are going to implement it in letter and spirit. I believe that the fix lies somewhere else, not cosmetic changes and putting more burden on the true white collar people.
Sounds irrelevant to the core problem: management
Another disaster in the making. Incoherent policies and poor executant departments can’t implement such directives.
Once again Pakistan coming up with policies to shift burden on honest people and incentives crooks and liars.
People who hide their income and use cash transactions will still not be bothered.
Another way for government to inquire about your income for their tax increments.. what a shit show.
Sahi *hootiyapa lga rkha hy in maa k pakoro ne
Most people are going solar. This doesn’t make sense
And there is no end to official MADNESS.
Why do people have to bear the burden of inefficient government? Why rely on IMF? After so many years why are we forced to beg? Why the people pay to support the luxurious lifestyles of politicians? Totally unacceptable
People will just start concealing their income. It won’t only lower their electricity bills, it will also help them dodge income tax. In the end, they’ll end up sabotaging their own tax collection system.
And meanwhile, they’ll be busy rolling out catchy jingles and flashy campaigns, as if a monkey could fire up a jingle and call it reform.
People in comments are being idiot, it’s great move, if they actually do it and not just talk.
It should have been income based tiers in first place.
It should be done with everything, progressive taxation must be introduced, which should even count unrealized P&L.
This is total crap. Instead of putting efforts to elevate the middle and lower middle masses, the govt is putting more efforts in increasing inefficiencies and burden the higher income. Is it the fault of higher earners the masses are living in poverty or govts. fault?
Election ،choro aur جہاز wali Rani Kay khurchay uthaay gee yah ghulaam qoum
so basically those who work hard enough to pay more taxes than the others will not get any benefit.
Instead, the government is penalizing them for paying more taxes and getting no benefits at all.
Jb eqtadar ma na ahel log ajy to phir kiyamat ka wait krro aur ye hi ho rha hai
must be another choo”””a idea from the “gorment”.
مجھے لگتا ہے ہم سب اپنے منطقی انجام کی طرف بڑھ رہے ہیں
In Pakistan Judges and top officials get 1200 to more than 2000 units in free and at same time their salaries are in millions….first of all end free units
Ya tp hoga jasi awam waisay humkran. Har shak pet ulo behta ha ajam gulistan Kya hoga.
Linking Electricity Fixed Charges with income is an unjust proposition . Further, disclosure of income to utilities company violates secrecy , courts have ruled that even Income Tax figures of individuals as an confidential item. Fixed charges based on connected load is logical & appropriate.
Not on my lifetime. Benefits are given to the previliged in Pakistan.
جب حکمرانوں کو یہ پتا ہو کہ وہ عوام کی ووٹ سے نہیں بلکہ چند حرام کر فارمیشن کمانڈرز کی مرضی سے آتے ہیں تو انہوں نے عوام کو ل۔۔۔۔ پہ اور جرنیلوں کو سر پہ ہی رکھنا ہے۔۔ اور ہمارے نالائق جرنیلوں کو یہ زعم ہے کہ وہ بہت ذہین اور فتین ہیں کیونکہ کہ وہ ساری زندگی ان دلالوں کو بچاتے ہیں جن کو وہ لے کر کی آئے ہیں اور عوام اس احترام میں کہ ان دلوں کی عزت نہ چلی جائے کہ فوج قوم کا سرمایہ ہوتی ہے ان کو برداشت کر رہے ہیں۔ن
Subsidy is should be discouraged by the government. Because ultimately, the burden comes on the exchequer. And people instead of working hard becomes lazy and begging all the time for help to government. Since poverty is a phenomena and can’t be controlled, people start criticising government policy. The government becomes a subject of criticism
I would have agreed with your comment if the Government governing our country was honest but sadly they are just a bunch of corrupt politicians and bandits.
Corruption At it best… No mercy to common citizens… benifits for mafias n elite of society… ✌️🇵🇰
Electricity servant should stay in limits
These people just know how to buy private luxury jets for themselves while putting all financial pressure on the general public. It doesn’t seem like Pakistan is a country under debt if we have a look at the leaders’ expenses, whether it is CM Punjab or the Field Marshal.