Major update on electricity subsidy for up to 200 units users
- By Web Desk -
- May 20, 2026
ISLAMABAD: The Ministry of Energy has strongly rejected media reports claiming that the government is planning to withdraw electricity subsidies for domestic consumers using up to 200 units per month, terming such reports “baseless and misleading,” ARY News reported.
According to a statement from the ministry spokesperson, there is no proposal under consideration to end or alter the existing relief policy for low electricity-consuming households.
The spokesperson clarified that the government remains committed to providing continued relief to low-income and low-consumption consumers, and no change has been planned for households consuming up to 200 units of electricity per month.
Earlier reports had suggested that Pakistan, under a new $1.2 billion climate financing programme with the International Monetary Fund, had agreed to phase out non-targeted electricity subsidies. However, officials have now formally denied any such immediate policy shift.
Sources indicated that currently, subsidised consumers are receiving relief of up to around Rs5,000 per month, keeping average bills near Rs2,000. If removed, these bills could potentially rise to as high as Rs7,000, according to estimates cited in earlier reports.
Reaffirming its stance, the Ministry of Energy said the government is focused on protecting low-income households and will not withdraw subsidies for consumers using less than 200 units of electricity per month.
Also Read: Electricity bills likely to rise across Pakistan
In other news. Power consumers across Pakistan, including customers of K-Electric, are likely to face an increase of PKR 1.72 per unit in electricity tariffs under the monthly fuel cost adjustment mechanism for April, according to official documents.
The proposed increase has been requested by the Central Power Purchasing Agency, which submitted its petition to the National Electric Power Regulatory Authority. The regulator is scheduled to hold a public hearing on June 2 to consider the request.
According to CPPA data, Pakistan generated 9.50 billion units of electricity in April at an average production cost of PKR 9.42 per unit. Around 9.295 billion units were supplied to power distribution companies during the month.