ISLAMABAD: There is good news for low-income earners who are concerned about high electricity and gas bills. The majority of Pakistan’s population is worried about these rising utility costs, with many individuals facing bills that exceed their income, creating significant financial strain. However, a change is on the horizon.
The federal government is preparing to implement a major overhaul of the electricity and gas tariff system. According to sources, a proposal is being considered to shift from the current consumption-based pricing model to an income-based pricing system.
Under this proposed model, subsidies would be allocated based on household income rather than the amount of energy consumed. This change aims to transform the existing pricing structure, which links rates solely to consumption.
With the new system, subsidies would be distributed proportionately according to a household’s income. This means that financial assistance will be targeted toward eligible consumers, while higher-income households would pay closer to the actual cost of energy.
These proposed reforms are reportedly connected to the ongoing negotiations with the International Monetary Fund (IMF). Pakistan is currently in discussions with the IMF to review electricity tariffs, with the fund emphasizing that any adjustments should not burden low- and middle-income groups.
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