The government is working on abolishing the protected electricity consumer category, a top official informed lawmakers on Tuesday, in a move that would replace subsidised tariffs with direct cash transfers for low-income households starting in 2027.
Briefing the Public Accounts Committee (PAC), Power Division Secretary Dr Muhammad Fakhr Alam Irfan told members that 58% of electricity consumers in Pakistan currently use 200 units or less per month and benefit from up to 60% subsidies on their bills.
Over the past few years, the number of protected consumers has risen by 5 million, he added.
He added that the eligibility for future subsidies will be determined through the Benazir Income Support Programme (BISP) database, signalling a shift toward targeted support for the most vulnerable.
The secretary also shared two proposals that have been submitted to the International Monetary Fund (IMF) to allow for additional electricity supply at reduced rates.
The first proposal would enable existing industries to avail electricity at global rates for second-shift operations. The second proposes concessional tariffs for new industries, cryptocurrency ventures, and data mining operations.