Energy Reform Plan: Power and Gas Subsidies for BISP Beneficiaries by 2025-26

Pakistan’s Energy Reform Plan will provide targeted power and gas subsidies to low-income families through the Benazir Income Support Programme (BISP) by 2025-26, ensuring fair and efficient support for the needy.

What is the Energy Reform Plan?

Pakistan’s Energy Reform Plan is a strategy to fix problems in the energy sector, like high costs and unfair subsidies. Right now, many people, including those who can afford to pay, get cheap electricity and gas. This costs the government a lot of money and creates debt. By 2025-26, the plan will give subsidies only to poor families through BISP, a program that helps low-income households. By 2027, all general subsidies will end, saving money for other needs.

How Does BISP Fit In?

BISP is Pakistan’s biggest program to support poor families, helping over 9 million households with cash payments, education, and health support. It focuses on women to help them manage money for their families. Under the reform plan:

• BISP will deliver power and gas subsidies to verified low-income families.
• It uses a special database (NSER) to find out who really needs help, making sure subsidies go to the right people.

How Will Subsidies Work?

Starting in 2025-26, BISP beneficiaries will get help with their electricity and gas bills in these ways:

• Electricity Subsidies: Money will be added to their BISP account or paid directly to the electric company to lower bills.
• Gas Subsidies: Similar payments will help cover gas costs, sent through BISP’s system.
• Digital Payments: A new system in 2025 will let people get money through bank accounts or ATMs. This makes it safe and clear who gets the funds.

Timeline of the Plan

• 2025: BISP will grow to help 10 million families. The cash payment (Kafalat stipend) will increase to PKR 13,500 every three months. A test run for digital payments will start in some areas.
• 2026: All power and gas subsidies will go through BISP. General subsidies for everyone else will stop.
• 2027: No more broad subsidies, only BISP-based help for the poor.

Who Can Get These Subsidies?

To qualify for BISP and the subsidies, families must:

• Earn less than PKR 50,000 a month.
• Have a low poverty score (checked by BISP’s survey).
• Do not own land, cars, or businesses.
• Be a Pakistani resident with a valid ID card.
• Widows, divorced women, or families with disabled members get priority.

Benefits for BISP Families

• Affordable Bills: Subsidies will make electricity and gas cheaper, helping families save money.
• Women’s Power: Since BISP gives money to women, they can make better choices for their homes.
• No Cheating: Digital payments and ID checks ensure only deserving people get help.
• Better Future: Saving government money means more funds for schools, hospitals, and jobs.

Challenges and Solutions

• Problem: Some families in far-off areas might not know about the program.
  • Fix: BISP is opening more registration offices and doing surveys to reach everyone.
• Problem: Digital payments might have technical issues.
  • Fix: BISP is working with banks to make the system smooth and reliable.
• Problem: Rising prices might make subsidies less helpful.
  • Fix: The government will adjust BISP payments to keep up with costs.

How to Apply and Get Subsidies

1. Register: Go to a BISP office with your ID card and proof of address. They’ll check if you qualify.
2. Get Payments: Subsidies will come through bank accounts, ATMs, or BISP cash points with fingerprint checks.
3. Check Status: Send a message to 8171 or visit the BISP website to see if you’re enrolled.
4. Ask for Help: Call 0800-26477 or visit a BISP office if you have issues.

Why This Plan Matters

• Saves Money: Giving subsidies only to the poor reduces government spending, freeing up funds for other projects.
• Helps the Needy: Millions of families will escape poverty with affordable energy and cash support.
• Fair System: Women and marginalized groups get more support, making society fairer.
• Green Impact: When richer people pay full price, they may use less energy, helping the environment.

Looking Ahead

By 2025, BISP will start training programs to teach skills, helping families earn more and rely less on subsidies. The program is also becoming a model for other countries, showing how to help the poor effectively. This plan is a big step toward making Pakistan’s energy system fair and sustainable while lifting up its most vulnerable people.