Reinventing Pakistan’s Welfare State: Replacing Energy Subsidies with Targeted Transfers
Using linked administrative data to redesign electricity subsidies around household need.
Research project · Pakistan · Social protection
Project
Broad electricity subsidies are costly and often deliver the largest absolute benefits to richer households. This project links administrative data on income and electricity use to study how Pakistan could replace price-based subsidies with transfers targeted to household need.
The research compares targeting rules and delivery mechanisms, quantifies distributional and fiscal effects, and examines how a redesigned system could protect vulnerable households without weakening utility finances or distorting electricity prices.
Results are not yet available. For updates on this project, get in touch.