The Ministry of Poverty Alleviation and Social Safety (MPA&SS) has announced plans to provide direct subsidies to protected domestic electricity consumers through E-vouchers, according to sources. This initiative aims to streamline financial assistance to deserving households, particularly those consuming up to 200 units of electricity while addressing the government’s commitment to targeted subsidy reforms.
A letter from the Benazir Income Support Program (BISP), dated September 18, 2024, detailed the framework for this subsidy distribution, which was shared with the Finance Ministry. Key decisions from the meeting include the following:
- BISP will share PMT-based (Proxy Means Test) data with the Power Division for further processing.
- Power Division, through DISCOs (Distribution Companies), will issue E-vouchers to verified consumers using registered mobile numbers, validated by the Pakistan Telecommunication Authority (PTA).
- The State Bank of Pakistan (SBP) will work with all banks to develop a system that integrates E-vouchers with electricity bills.
- The Ministry of Finance is tasked with assisting in engaging the SBP for the smooth implementation of the scheme.
The proposed plan outlines a process where up to 20 million families with PMT-determined electricity connections will receive E-vouchers. These families will present their vouchers and bills at designated bill collection points, including financial institutions. The system will then verify the subsidy through meter reference numbers and CNICs, automatically updating backend data.
To ensure transparency, the Power Division and DISCOs will collaborate with BISP to match consumption data against PMT scores, excluding non-deserving consumers. Any discrepancies, such as overpayment or ineligibility, will be adjusted in subsequent bills. Consumers who believe they deserve the subsidy but are not included will have the opportunity to register through the National Socio-Economic Registry (NSER) desks.
In an effort to prevent misuse, it was also proposed that only one meter per family will be eligible for the subsidy, addressing concerns about households with multiple meters benefiting from multiple subsidies.
The MPA&SS has urged BISP, the Power Division, and the Finance Division to swiftly implement these decisions, with regular updates provided to the Prime Minister’s Task Management System (TMS). The government reaffirmed its commitment to the International Monetary Fund (IMF) to introduce targeted subsidy reforms, replacing cross-subsidies with direct support through BISP.
