The Government of Pakistan has announced plans to gradually abolish the protected electricity consumer category—those using up to 200 units per month—by 2027. This was confirmed by Secretary of the Power Division, Dr. Fakhre Alam Irfan, during a Public Accounts Committee session chaired by MNA Junaid Akbar Khan.
The decision is part of broader reforms to reduce energy subsidies and improve structural inefficiencies in the power sector. Currently, around 18 million consumers—58% of the total user base—fall under the protected category, up from 11 million previously. These consumers benefit from heavily subsidized rates, receiving up to 70% discounts.
Dr. Irfan explained that the government is rolling back these subsidies in stages and aims to resolve the issue for 200-unit consumers within the next 18 months, with complete elimination planned over the next two and a half years.
The government is also addressing surplus electricity in the national grid. Two proposals are being considered: offering discounted power to existing industries and providing affordable electricity to new industrial units. However, both plans require approval from the International Monetary Fund (IMF), which oversees key economic decisions under ongoing financial agreements.
Dr. Irfan emphasized that no major energy decision is finalized without IMF consultation, and any approved proposals will then be presented to the federal cabinet for formal endorsement.
