Pakistan, Oct. 11 -- Pakistan plans to introduce a new electricity and gas subsidy system in 2027, targeting verified low-income households. The government aims to replace existing subsidy slabs and cross-subsidies as part of wider energy sector reforms. The changes also seek to address International Monetary Fund (IMF) conditions and reduce financial pressure on the energy sector.

The new electricity subsidy mechanism will begin in January 2027. The revised system for gas consumers will take effect on July 1, 2027. Officials aim to direct financial assistance towards households that qualify for support. The government expects these changes to improve transparency and make subsidy distribution more effective.

The Power Division has star...