PM forms panel on power subsidy redesign
Prime Minister Shehbaz Sharif has set up a high-level ministerial committee to draw up a strategy for rationalising power-sector subsidies and shifting them, over time, towards targeted support linked with the Benazir Income Support Programme (BISP), the government’s main cash-transfer scheme for poor households.
The committee is chaired by Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal. Its members include Rana Sanaullah Khan, Sardar Awais Ahmad Khan Leghari, Dr Musaddak Malik, Ahad Khan Cheema, Shaza Fatima Khawaja, Attaullah Tarar, Muhammad Ali, Bilal Azhar Kayani, Lt Gen Muhammad Zafar Iqbal (Retd) and Talha Barki, along with the Secretary Finance, Chairman NADRA, Secretary Power, the head of the Government Relations Unit at the Prime Minister’s Office, a GRU-nominated energy expert and Dr Sohail Anwar Ch.
What the committee must deliver
Under the decision, the panel is to submit recommendations within two months from 18 October 2026. The proposed reforms are envisaged to take effect from 1 January 2027.
Officials want to move away from broad-based electricity subsidies—discounts spread across many consumer categories—towards a system in which financial assistance reaches deserving users, especially low-income households, through a clearer identification and verification process. The committee will review the present subsidy framework, flag gaps, and suggest how untargeted support can be withdrawn or restructured gradually. It will also look at how electricity-related payments could be tied to BISP and the related beneficiary database.
The government is considering changes to the current electricity subsidy regime, including relief for consumers who use up to 200 units a month. Under the approach being discussed, eligibility would rest more on an assessment of household circumstances than on electricity consumption alone.
Safeguards, registries and fiscal pressure
That shift, however, still needs a reliable beneficiary registry, a way to verify who qualifies, and coordination among the Power Division, the Finance Division and BISP. The framework for identifying beneficiaries and putting the changes into practice has not yet been finalised.
The committee is also expected to weigh the fiscal cost of today’s subsidy structure and propose steps to ease the burden on the federal budget while shielding vulnerable consumers from a sudden jump in electricity bills. Pakistan’s total subsidy bill is estimated at Rs1.091 trillion. The power-sector subsidy allocation for fiscal year 2026-27 stands at Rs830 billion.
The government says it wants more efficient subsidy spending and better fiscal discipline. The planned redesign is also relevant to Pakistan’s commitments under programmes with the International Monetary Fund (IMF)—the global lender that often backs economic reform packages—and the World Bank.
Timeline: what has happened so far
- 18 October 2026: The two-month clock for the committee’s recommendations begins under the prime minister’s decision.
- By mid-December 2026: Recommendations are due (within two months of 18 October 2026).
- Fiscal year 2026-27: Power-sector subsidy allocation stands at Rs830 billion amid a total subsidy bill estimated at Rs1.091 trillion.
- 1 January 2027: Proposed reforms are envisaged to take effect, subject to the committee’s recommendations on scope, pace and institutional arrangements.
The panel’s advice will shape how far and how fast the transition goes, including the administrative setup needed from that date. The stated aim is a more sustainable subsidy bill, with help directed to households that need it most, and with safeguards for low-income consumers.
Aasan alfaaz mein
Hukumat bijli ki subsidies ko badalna chahti hai taake sirf zarurat mand gharanon ko madad mile. Planning minister Ahsan Iqbal ki sarbaraahi mein ek committee yeh plan banayegi aur BISP se joarna socha gaya hai. Committee ko October 2026 se do mahine mein tajawiz deni hain; naya nizam 1 January 2027 se shuru hone ka irada hai. Abhi rules final nahi hue—agar aap kam units use karte hain, bill ka asar baad mein clear hoga.
