Pakistan commits to targeted electricity subsidy system linked with BISP under IMF programme

Pakistan has assured the International Monetary Fund that it will proceed with electricity subsidy reforms aimed at replacing the existing tariff differential and cross-subsidy system with a targeted subsidy mechanism for low-income consumers through the Benazir Income Support Programme.

According to the IMF’s latest staff report, Pakistani authorities informed the Fund that they were working with the World Bank to link electricity consumers with the National Socio-Economic Registry database.

The government plans to complete the linkage process and validity checks by end-November 2026, after which eligibility criteria for targeted subsidies will be finalised.

The authorities also informed the IMF that a communications campaign for the subsidy reform programme was being launched, with plans to hire an external firm by end-May 2026, alongside development of a payment mechanism for the subsidy framework.

According to the report, Pakistan also notified adoption of Public Procurement Regulatory Authority regulations in December 2025 mandating procurement compliant with Minimum Energy Performance Standards and is now coordinating with provincial governments for implementation at the provincial level.

The IMF said Pakistan was also developing a tracking system to monitor compliance with Minimum Energy Performance Standards for five electronic appliances by end-December 2026.