Pakistan assures IMF it will replace 200-unit power subsidy with targeted aid

On 2026-05-07, Pakistan said it had reached agreement with the IMF to replace the current electricity subsidy mechanism with a targeted system. The reform would end the general subsidy for 200-unit users from January 2027 and route support through BISP-linked eligibility checks. The IMF is due to review a $1.2 billion disbursement on May 8.