Pakistan Govt working to expand electricity subsidy beyond 200 units

The Pakistani government is considering expanding electricity relief to households consuming up to 250 units per month while also developing a system that would determine eligibility based on financial need rather than electricity consumption alone.

The Pakistani government is considering expanding electricity relief to households consuming up to 250 units per month while also developing a system that would determine eligibility based on financial need rather than electricity consumption alone.

Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari shared the proposal during a Senate session on Tuesday, October 27, 2026. He said the government wanted to ensure that electricity subsidies reached low-income households instead of benefiting wealthier consumers.

According to Leghari some financially well-off households have installed solar panels to bring their grid electricity consumption below 200 units allowing them to qualify for relief intended for less affluent consumers. He said the government was working on a mechanism to identify people living below the poverty line and provide them with targeted assistance.

The minister revealed that around 20 million electricity consumers now use up to 200 units with most reportedly relying on solar energy. He emphasised that electricity tariff categories needed to be designed carefully to prevent unfair advantages and ensure that relief reached deserving households.

Leghari also discussed the financial position of Pakistan’s power sector stating that circular debt had fallen to Rs1.67 trillion. The government aims to eliminate the outstanding amount within four years and abolish the associated debt servicing surcharge during the same period.

He added that budgetary support for the power sector had declined from Rs1.18 trillion when the current government assumed office to Rs700 billion in the current fiscal year. Losses recorded by electricity distribution companies (DISCOs) have also decreased annually although consumers have yet to receive the full benefits of these improvements.

During the Senate proceedings Senator Abid Sher Ali criticised the existing electricity tariff structure saying bills could rise sharply when consumption exceeded the 200-unit limit by even a single unit. He also questioned whether electricity theft and distribution losses were increasing the financial burden on ordinary consumers.

Meanwhile, Leghari recently directed electricity distribution companies to stop issuing excessive or unjustified detection bills. The Power Division is requiring DISCOs to issue such bills through a centralised online portal developed by the Pakistan Information Technology Company (PITC) with manual billing prohibited under the new instructions.

The government is also preparing amendments to the Consumer Service Manual to establish clearer procedures and timelines.

Although the proposed expansion could benefit some households the government has not yet announced a final decision or implementation date for the 250-unit relief threshold.