The Government of Pakistan has decided to phase out subsidies for protected electricity consumers by 2027, according to Secretary of the Power Division Dr. Fakhre Alam Irfan.
During a Public Accounts Committee meeting chaired by Junaid Akbar Khan, Dr. Irfan revealed that protected users—those consuming up to 200 units monthly—have increased from 11 million to 18 million, now making up 58% of the total electricity consumers in the country.
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These consumers currently enjoy subsidies of up to 70%. The Power Division has started reducing these subsidies gradually and aims to completely eliminate them within the next one and a half years.
Dr. Irfan added that resolving the subsidy issue is a key priority. The government is also working on addressing the surplus electricity in the system.
Two proposals are being considered: offering discounted power to existing industries or supplying low-cost electricity to upcoming industrial units. However, both plans require approval from the IMF, which is still pending.
Separately, the Power Division has submitted a proposal to NEPRA to lower electricity rates nationwide. If approved, domestic tariffs could drop by Rs. 1.16 per unit, bringing relief to households. Protected users may also see reduced rates, with no increase proposed for lifeline users.
