Pakistan's government plans to stop giving cheap electricity to every household. From January 1, 2027, only poor families will get the subsidy. Richer households will pay the full price.
Prime Minister Shehbaz Sharif has set up a committee to plan this change. The committee must give its report by mid-December 2026. That is two months after it was formed on October 18.
Planning Minister Ahsan Iqbal heads the committee. Its members include federal ministers and senior officers from the Finance Division, the Power Division, and NADRA. Staff from the Prime Minister's Office and the energy sector are also on the team.
Right now, households that use up to 200 units of electricity a month get a subsidy. This rule applies to most homes, rich or poor.
Under the new plan, help will go only to families already registered with the Benazir Income Support Programme, known as BISP. A household's income will decide if it gets help. How much electricity it uses will matter less.
The committee will check the current subsidy system and study its cost. It will also plan how to shift to the new system step by step. This includes linking the subsidy to BISP's list of poor families, checking who is eligible, and getting government departments to work together.
The government's total subsidy bill is estimated at Rs1.091 trillion. Of this, Rs830 billion is set aside for power subsidies in the 2026-27 financial year.
The government wants to cut how much it spends on subsidies. It also wants to protect poor families from sudden jumps in their electricity bills. The plan is part of Pakistan's commitments to the IMF and the World Bank to fix its finances.
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Source: Govt plans targeted power subsidies through BISP from January 2027, Profit by Pakistan Today, October 26, 2026.
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