Govt to end slab system punishing power consumers crossing 200-unit threshold

Power Minister Awais Leghari announced plans to eliminate the electricity slab system that penalizes consumers for exceeding a 200-unit monthly threshold. Under the existing system, those using up to 200 units enjoy a subsidy, but any increase, no matter how slight, results in significantly higher per-unit costs and a six-month ban on receiving the subsidy.

Leghari stated that the government was expediting the abolition of this punitive system and considering two options: raising the 200-unit limit to 250 units or allowing a one-month return to the protected category for consumers who limit their consumption to 200 units. The minister also highlighted the rapid growth in the number of protected consumers, from 10 million to 20-25 million, due to the adoption of solar energy.

However, the new subsidy system will target those below the poverty line and lower-middle income groups, ensuring that the financial burden does not fall on the poorest citizens. Leghari also discussed the power sector's financial situation, noting that circular debt had stabilized and efforts to reduce losses were improving. The government aims to eliminate circular debt within four years and abolish the debt servicing surcharge.

Additionally, the government is implementing a national artificial intelligence ecosystem, investing $1 billion in AI development by 2030 and joining a China-led World AI Cooperation Organisation.