In Pakistan, affordable and clean energy, which is number 7th of Sustainable Development Goal (SDG), was considered as category-1 target that requires immediate policy intervention by Government of Pakistan. This reflects the significance of the issue that persist in the country since decades. The proposed research aims to find the impact of recent upsurge of electricity tariff due to the gradual elimination of subsidies on household welfare. This proposed study will further analyze the redistribution of subsidies between various income groups. The study will provide a comprehensive measure of energy poverty by including a wider set of variables representing both access and affordability dimensions of energy provisioning at household level. Because of the existing caveats in the secondary datasets, the study aims to conduct a primary survey of Karachi as a case study for obtaining the in-depth information on energy situation This study thus aims to form a rigorous analytical basis for energy policy making in Pakistan. The study contributes to the existing literature not only by conducting the impact assessment of tariff on household welfare but will also contributes by matching a policy variable with micro dataset. The primary survey, extending the PSLM/HIES data for energy related issues will be an additional contribution.