Electricity Subsidy for Low-Use Customers to Remain Unchanged

The Federal Minister for Power, Sardar Awais Ahmad Khan Leghari, recently spoke in the National Assembly about the government’s stance on electricity subsidies. He confirmed that the current protected electricity slab for households using up to 200 units per month is unlikely to be expanded to include consumers using up to 300 units.

Responding to a question, the minister highlighted that over the past nine months, electricity costs for those using up to 200 units have already fallen by approximately 60%. He explained that around 18.3 million of the country’s 35 million electricity consumers are already benefiting from subsidies. Specifically, households using up to 100 units get a 90% subsidy, while those using between 100 and 200 units receive a 70% subsidy.

Expanding this to the 300-unit mark would require an additional Rs. 275 billion in subsidies, which the government cannot afford given the current economic situation. The minister noted that the government is already shouldering a significant financial burden for its low-use consumers.

Additionally, in a separate query, the minister stated that no subsidized electricity has been provided to cryptocurrency mining projects in Pakistan. He clarified that there is currently no approved legal framework or tariff plan for such ventures.

On a more positive note, he mentioned that the government has introduced an incremental electricity package for the industrial sector. This initiative, which does not include any subsidies, is intended to boost competitiveness, particularly for industries focused on exports. He added that there’s an extra 7,500 MW of power available, and discussions are underway with development partners and the IMF to use this surplus to improve the stability of the national grid.