Residential Electricity Subsidies in Pakistan : Targeting, Welfare Impacts, and Options for Reform
This report examines the system of residential electricity subsidies in Pakistan, and explores how it can be improved to better assist households within the existing political and budgetary constraints. The report is multi-disciplinary in nature, d...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/335131501862874291/Residential-electricity-subsidies-in-Pakistan-targeting-welfare-impacts-and-options-for-reform http://hdl.handle.net/10986/29196 |
| Summary: | This report examines the system of
residential electricity subsidies in Pakistan, and explores
how it can be improved to better assist households within
the existing political and budgetary constraints. The report
is multi-disciplinary in nature, drawing on specially
commissioned analysis of survey and administrative data on
household electricity consumption, as well as a qualitative
assessment of household and service provider attitudes and
experiences. Based on the findings of this research, the
report suggests various ways in which the Government of
Pakistan can better target subsidies and manage the reform
in a politically sensitive manner. The report is structured
as follows: chapter I describes the current system of
electricity subsidies in Pakistan and the pricing mechanism,
takes stock of international experience on energy subsidy
reforms, and highlights the importance of considering
subsidies as part of the broader social safety net. Chapter
II examines the relationship between electricity consumption
and welfare using household survey and electricity company
microdata. Chapter III presents the findings of the
qualitative study, illustrating how households use
electricity, manage their bills, and cope with increasing
electricity costs and service disruptions. Finally, chapter
IV summarizes the policy implications arising from the
multi-disciplinary study, and presents recommendations on
how to improve the affordability of electricity for
households in need in a manner that is politically
acceptable and sustainable. |
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