ISLAMABAD – The Power Division Secretary has confirmed reports that the government plans to abolish the category of “protected” electricity consumers.
The confirmation came during a meeting of the National Assembly’s Public Accounts Committee, chaired by Junaid Akbar. In a briefing, the Power Division Secretary explained that 58% of electricity consumers in Pakistan use up to 200 units per month and currently receive up to 60% subsidy on their bills. Over the past few years, the number of protected consumers has increased by 5 million.
He added that the government is working to phase out the protected consumer category. In the future, eligibility for subsidized electricity will be determined based on BISP (Benazir Income Support Programme) data, and starting from 2027, low-income consumers will receive direct cash assistance.
The audit also revealed that eight electricity distribution companies were involved in overbilling, amounting to Rs244 billion.
The Power Secretary mentioned that Pakistan has presented two proposals to the IMF to provide additional low-cost electricity. The first suggests supplying power to existing industries for a second shift at international rates. The second proposes offering lower rates to new industries, including crypto and data mining sectors.
While talks with the IMF are ongoing, no formal response has been received yet. If approved by the IMF, the proposals will be sent to the federal cabinet for approval immediately.
Committee member Omar Ayub commented that the PTI government had already implemented such a policy during COVID-19 and urged the government to make independent decisions rather than relying on the IMF.
Another member, Shazia Marri, questioned why there is widespread load-shedding if surplus electricity is available. She highlighted 14-hour outages in Sanghar and criticized past delays in using Thar coal due to pressure from vested interests. She said that while protests were held against the Sahiwal coal plant, it’s now acknowledged that opposing it was a mistake.
Responding to this, the Power Secretary said Thar coal is now being used to produce the cheapest electricity and more plants are being planned to run on Thar coal. A railway track is being laid to transport the coal to other power plants, including the Jamshoro plant, which will also shift to Thar coal.
He added that no new power plants will be built on imported fuel over the next 10 years. The government’s focus is on hydropower and local coal-based projects, along with promoting alternative energy sources. Efforts are also underway to reduce the cross-subsidy burden on industrial and commercial consumers.
