New Targeted Electricity, Gas Subsidy System Planned
The government has prepared a mechanism built on the Economic Social Registry and BISP to direct relief to eligible households, in line with IMF timelines.
Govt plans a targeted electricity and gas subsidy system using BISP and the Economic Social Registry, with a steering committee led by Ishaq Dar.
The government has prepared a new targeted mechanism for electricity and gas subsidies, using the Economic Social Registry and the Benazir Income Support Programme (BISP) to direct relief to eligible households, according to sources. The plan fits timelines agreed with the International Monetary Fund (IMF).
Registry Prepared
The Power Division and the Ministry of Petroleum have prepared the Economic Social Registry to support the new system. Relief for low-consumption electricity and gas users would be limited to households registered under BISP.
Extension for Small Consumers
The government wants to extend electricity subsidies for households using up to 200 units per month by six months. The existing subsidy framework is planned to continue until June 30, 2027.
Approval Process
A steering committee led by Deputy Prime Minister Ishaq Dar will make the final decision after briefings from the Power Division and the Ministry of Petroleum. A test run will be conducted before full implementation, according to sources.
Timeline
Electricity: the new subsidy system is due by January 1, 2027.
Gas: the new mechanism is due by February 2027.
Existing framework: to continue until June 30, 2027.
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