IMF Pushes Pakistan to Raise GST Amid Budget Standoff
June 1, 2026
Pakistan’s power subsidy programme is growing rapidly, with officials pledging continued support for eligible households while rolling out reforms to improve efficiency and reduce sector losses.
Pakistan is spending a lot of money on electricity subsidies, which has gone up to ₨527 billion. This is because the number of households that get protection has more than doubled in recent years. Energy Minister Awais Leghari said on Sunday that the government is still helping people who use electricity and do not have a lot of money even though some people are saying otherwise.
When he talked to the media Leghari said that the government is not going to stop helping people who get protected electricity. He said that the government is changing some policies to make sure that the right people are getting help and to make the system work better. Leghari said that some reports about the government stopping subsidies are not true.
According to numbers the number of households that get protected electricity has gone up from 9.5 million to 21.5 million in the last four years. 29.6 Million people who use electricity at home are getting subsidized electricity, which is a big majority of the people who use electricity in the country.
The number of people who are getting help has made the government spend a lot money. The money spent on electricity subsidies has gone up from ₨199 billion to ₨423 billion. The total amount of money spent on helping people who use electricity at home and on farms has reached ₨527 billion, which is putting a lot of pressure on the governments finances.
The government is also making some changes to make sure that subsidies are given out in a way. A new system that uses QR codes to register and verify people who use single-phase electricity has already signed up than two million people. The government says that this will help make sure that the right people are getting help.
Leghari talked about some things the government is doing to make the electricity system work better. He said that the government has made some deals with companies that make electricity, which will save ₨3.5 trillion. The government has also saved ₨193 billion by reducing the amount of electricity that is lost during distribution. The government has also made some changes that have helped like reducing the amount of debt and making the electricity system work more efficiently.
The minister said that the price of electricity has gone down for people in the last two years. People who get protected electricity have seen some of the reductions and households, industries, businesses and farmers have also paid less for electricity. This has helped reduce the price of electricity in the country.
The government wants to get more of its electricity from local sources in the future. Leghari said that making renewable and clean energy is very important and that the government is making some changes to its policies, on energy and net metering to make the system work better and be more transparent. He said again that the government will keep giving subsidies. It wants to make the system fairer, more efficient and sustainable in the long term.
