Wateen, Akhuwat Partner on AI Loan Automation
February 20, 2026
Pakistan plans to tie energy tariffs to income, not just usage. The shift could redefine who gets subsidies—and who pays more.
The federal government has begun groundwork for sweeping changes to Pakistan’s electricity and gas pricing structure, shifting from consumption-based slabs to an income-linked model aimed at fairer subsidy distribution.
Officials say the proposed system will categorize households according to income levels, ensuring support reaches lower-earning families rather than being determined solely by units consumed. The reforms are being shaped in line with commitments made to the International Monetary Fund as part of broader fiscal adjustments.
Under the existing 2026 electricity tariff framework, protected consumers pay Rs10.54 per unit for up to 100 units and Rs13.01 for 101–200 units. Non-protected users are charged Rs22.44 for up to 100 units and Rs28.91 for 101–200 units.
The National Electric Power Regulatory Authority has recommended Rs33.10 per unit for 201–300 units. Higher brackets include Rs37.99 (301–400), Rs40.22 (401–500), Rs41.62 (501–600), Rs42.76 (601–700), and Rs47.69 for consumption exceeding 700 units.
An official familiar with the discussions said the objective is to create “a more targeted and equitable subsidy mechanism” while maintaining financial discipline in the energy sector.
