The Government of Pakistan has outlined a plan to gradually eliminate electricity subsidies for protected consumers—those who use up to 200 units per month—by 2027, according to ARY News, citing the Secretary of the Power Division.
During a Public Accounts Committee meeting chaired by Junaid Akbar Khan, Secretary Dr. Fakhre Alam Irfan revealed that the number of protected users had surged from 11 million to 18 million, now representing 58% of total electricity consumers. These users currently receive subsidies ranging from 60% to 70%, the highest across all categories.
Dr. Irfan stated that within the next 18 months, the government plans to phase out these subsidies, in line with broader economic reforms.
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In addition, the government is exploring ways to address surplus electricity in the system. Two key proposals are under consideration: offering discounted electricity rates to existing industries or providing affordable power to new industrial units. However, both options are still awaiting approval from the International Monetary Fund (IMF), with ongoing discussions.
Meanwhile, the Power Division has also proposed a uniform tariff system to the National Electric Power Regulatory Authority (NEPRA). This may lead to a reduction in electricity prices nationwide, including Karachi.
If approved, domestic electricity tariffs could decrease by Rs 1.16 per unit, lowering the maximum rate from Rs 48.84 to Rs 47.69. Protected users may also benefit, with rates dropping to Rs 10.54 for 0–100 units and Rs 13.01 for 101–200 units. Lifeline consumers using up to 50 units will continue paying Rs 3.95 per unit, with no change proposed.