Govt Plans to End Power Subsidies by 2027 as Protected Users Rise to 18 Million
ISLAMABAD – In a recent Public Accounts Committee (PAC) meeting chaired by Junaid Akbar Khan, Secretary of the Power Division, Dr. Fakhre Alam Irfan revealed a significant surge in the number of protected electricity consumers in Pakistan—from 11 million to 18 million. These protected users, who consume up to 200 units of electricity per month, now account for 58% of the country’s total power consumers.
Dr. Irfan stated that these consumers currently receive the highest subsidies, ranging between 60% and 70%. However, he also confirmed that the government aims to gradually phase out all electricity subsidies by 2027. The issue of subsidies for protected users is expected to be fully addressed within the next 18 months.
The committee also discussed the issue of surplus electricity in the country. Two key proposals are being considered: supplying discounted electricity to existing industries or offering affordable power to new industrial setups. However, both plans are awaiting approval from the International Monetary Fund (IMF), which reviews all major policy decisions before they are presented to the federal cabinet.
Separately, the Power Division has submitted a proposal to the National Electric Power Regulatory Authority (NEPRA) to reduce electricity prices across Pakistan, including Karachi, by implementing a uniform tariff structure.
NEPRA is set to hear the request, and if approved, the revised rates will be applicable in the upcoming fiscal year. As per the proposal, domestic electricity rates could decrease by Rs 1.16 per unit—lowering the maximum rate from Rs 48.84 to Rs 47.69 per unit.
This price cut aims to benefit both middle-income and low-consumption households. Protected users consuming up to 100 units may pay Rs 10.54 per unit, while those using between 101 and 200 units could see their rate drop to Rs 13.01 per unit. Meanwhile, lifeline users who consume up to 50 units will continue to pay Rs 3.95 per unit, with no changes proposed.
Mutib Khalid is a skilled content writer and digital marketer with a knack for crafting compelling narratives and optimizing digital strategies. Excel in creating engaging content that drives results and enhances online presence. Passionate about blending creativity with data-driven approaches, Mutib Khalid helps brands connect with their audience and achieve their goals.