Govt to Give 104% Higher Power Subsidies

The federal government has drawn up a Rs. 1,190 billion subsidy package for the power sector in the new federal budget. These subsidies are 104 percent or Rs. 606 billion more than Rs. 585 billion allocated for the current fiscal year. Key estimates from the government’s document include: Despite repeated demands of the International Monetary Fund (IMF) to make policies for reducing circular debt and expediting the recovery of electricity costs from all categories of consumers, the government has planned higher subsidies for the power sector. Pertinently, the industrial sector has to pay higher tariffs to help the government give subsidies to domestic consumers.