Govt plans targeted power subsidies through BISP from January 2027

The federal government is preparing to shift electricity support from broad subsidies to payments targeted at low-income households through the Benazir Income Support Programme (BISP), with the change planned for January 1, 2027. Profit by Pakistan Today reported that Prime Minister Shehbaz Sharif has assigned a ministerial committee, led by Planning Minister Ahsan Iqbal, to present recommendations within two months of October 18, 2026.

The panel will review subsidy costs and propose a phased transition, including how electricity consumers could be matched with BISP records. The current support for households using up to 200 units monthly could also change, as eligibility is expected to reflect household finances rather than consumption alone; criteria and implementation arrangements are not yet settled. The estimated national subsidy bill is Rs1.091 trillion, including Rs830 billion for the power sector in FY2026-27, while the reform is tied to fiscal commitments involving the IMF and World Bank.