The Government of Pakistan has decided to phase out the “protected consumer” category for electricity by 2027, according to Secretary Power Division Dr. Fakhre Alam Irfan. Speaking during a Public Accounts Committee meeting chaired by Junaid Akbar Khan, Dr. Irfan revealed that consumers using up to 200 units of electricity per month—classified as protected—have increased from 11 million to 18 million. These consumers now account for 58% of the country’s total power users and currently benefit from heavy subsidies ranging between 60% to 70%.
Dr. Irfan stated that the government has initiated a gradual withdrawal of these subsidies, aiming to completely eliminate them within the next two years. He added that the subsidy issue for users consuming up to 200 units will be addressed within the next 18 months.
The Power Division is also tackling the issue of surplus electricity. Two proposals under consideration include providing electricity to industries at concessional rates or offering low-cost power to new industrial units. However, both plans are pending approval from the International Monetary Fund (IMF). Dr. Irfan noted that all major policy decisions must receive IMF clearance, followed by federal cabinet approval.
In a related move, the Power Division has submitted a proposal to NEPRA to implement a uniform tariff reduction across the country, including Karachi. If approved, electricity prices for domestic consumers could drop by Rs. 1.16 per unit—from Rs. 48.84 to Rs. 47.69 per unit—in the next fiscal year. For protected users, rates could be revised to Rs. 10.54 per unit for up to 100 units and Rs. 13.01 for those using 101–200 units. Lifeline users (up to 50 units) will continue to pay Rs. 3.95 per unit, with no change proposed. These changes aim to balance fiscal discipline with consumer relief.
Read more: Government Ends Duty Collection via Electricity Bills
