Government Finalizes Subsidy Design to Aid Lifeline Electricity Consumers Across Pakistan
The government on the brink of a major initiative aimed at assisting millions of lifeline electricity consumers across Pakistan. The Benazir Income Support Program (BISP) set to provide targeted electricity subsidies through a new plan currently awaiting final approval from the Federal Cabinet.
Key Points of the Subsidy Plan:
- Objective of the Subsidy: The primary goal of this initiative is to convert non-targeted electricity subsidies into a targeted program, ensuring that support reaches those who need it most. By leveraging BISP’s existing infrastructure, the Power Division aims to streamline the distribution of electricity subsidies.
- Implementation Strategy: The Power Division has proposed using BISP’s database to identify eligible families for the electricity subsidy. BISP will determine the eligibility criteria in consultation with the Power Division and will screen families based on their electricity connection details and cutoff scores.
- Financial Processing: To facilitate the subsidy and payment processes, the Power Division will work with the State Bank of Pakistan. This collaboration will include onboarding financial institutions and banks, as well as coordinating with stakeholders involved in bill collection such as Pakistan Post, commercial banks, and mobile banking services.
- Outcome: The Power Division will provide BISP with the number of families eligible for the subsidy. BISP will use this information to identify and assist qualifying households, aiming to make the electricity subsidy program as effective and efficient as possible.
The final decision on this initiative rests with the Federal Cabinet, which will review the detailed proposal before granting its approval. Once approved, this program expected to significantly benefit those who are most in need of financial assistance with their electricity bills.
