Last updated: 02/4/2020
Programme objectives

To cover the gap between the cost of electricity and the government-set tariff for end consumers 

References
Khan, Amir Jahan. 2014. “Structure and Regulation of the Electricity Networks in Pakistan.” The Pakistan Development Review 53:4 Part II, 505–530. <http://www.pide.org.pk/pdf/PDR/2014/Volume4/505-530.pdf>. Accessed 24 July 2018.
Country
Geographic area
Previous programme name (if any)
 
Institutions and agencies involved
Start date
1998
References
Khan, Amir Jahan. 2014. “Structure and Regulation of the Electricity Networks in Pakistan.” The Pakistan Development Review 53:4 Part II, 505–530. <http://www.pide.org.pk/pdf/PDR/2014/Volume4/505-530.pdf>. Accessed 24 July 2018.
Programme components
The Tariff Differential Subsidy (TDS) is the main subsidy, consisting of a government transfer to the power distribution companies (DISCOs) covering the difference between the electricity provision costs and the Uniform Minimum Tariff (UMF) established at the national level. Moreover, certain categories of consumers are charged an even lower tariff than the UMF
References
IMF. 2017. Pakistan: Selected Issues. Country Report No. 17/213. International Monetary Fund Middle East and Central Asia Department. <http://www.imf.org/en/Publications/CR/Issues/2017/07/13/Pakistan-Selected-Issues-45079>. Accessed 23 July 2018.
Conditionalities (if any)
 
Contribution type and amount
 
Targeting methods
Categorical Targeting
Targeted areas
Nationwide
Target groups
Poor households
Eligibility criteria
Housholds pay different prices according to electricity usage: from those that consume up to 50 kWh per month (those who benefit from the ‘lifeline tariff’) up to those that consume over 700 kWh per month
References
Walker, Thomas, Ezgi Canpolat, Farah Khalid Khan, and Adea Kryeziu. 2016. Residential Electricity Subsidies in Pakistan: Targeting, Welfare Impacts, and Options for Reform. Washington, D.C.: World Bank <http://documents.worldbank.org/curated/en/918461481635891184/pdf/WPS7912.pdf>. Accessed 11 June 2018.
Eligibility reassessment (if any)
 
Type of benefits
Electricity
Amount of benefits
Unit cost of the monthly residential tariffs (in 2015-2016) per monthly consumption level: 0‐50 kWh: PKR2 (lifeline tariff) 1‐100 kWh: PKR5.79 101‐200 kWh: PKR8.11 201‐300 kWh: PKR10.20 301‐700 kWh: PKR16.00 700+ kWh: PKR18.00 However, there is a minimum monthly charge of PKR75, which means that only households that consume between 38 and 50 kWh per month actually benefit from the lifeline tarrif
References
Walker, Thomas, Ezgi Canpolat, Farah Khalid Khan, and Adea Kryeziu. 2016. Residential Electricity Subsidies in Pakistan: Targeting, Welfare Impacts, and Options for Reform. Washington, D.C.: World Bank <http://documents.worldbank.org/curated/en/918461481635891184/pdf/WPS7912.pdf>. Accessed 11 June 2018.
Payment/delivery frequency
Monthly
References
Walker, Thomas, Ezgi Canpolat, Farah Khalid Khan, and Adea Kryeziu. 2016. Residential Electricity Subsidies in Pakistan: Targeting, Welfare Impacts, and Options for Reform. Washington, D.C.: World Bank <http://documents.worldbank.org/curated/en/918461481635891184/pdf/WPS7912.pdf>. Accessed 11 June 2018.
Benefit delivery mechanism
The government transfers the money to the electricity companies that provide consumers with the service
References
IMF. 2017. Pakistan: Selected Issues. Country Report No. 17/213. International Monetary Fund Middle East and Central Asia Department. <http://www.imf.org/en/Publications/CR/Issues/2017/07/13/Pakistan-Selected-Issues-45079>. Accessed 23 July 2018.
Benefit recipients
Beneficiaries themselves
Minimum and maximum duration of benefits (if any)
 
Coverage
 
Programme expenditure
0.6 percent of GDP in the 2015/16 fiscal year. Subsidies for the lifeline tariff comprise a small part of overall subsidy expenditure (8.5 per cent)
References
IMF. 2017. Pakistan: Selected Issues. Country Report No. 17/213. International Monetary Fund Middle East and Central Asia Department. <http://www.imf.org/en/Publications/CR/Issues/2017/07/13/Pakistan-Selected-Issues-45079>. Accessed 23 July 2018.
Monitoring and evaluation mechanisms and frequency
 
Legal Framework
 
MIS
 
Population Group