Government Halts Rs50 Billion Subsidy, Affecting 26 Million Families

The government has decided to halt the Rs50 billion subsidy previously allocated to Utility Stores, a decision that will affect around 26 million low-income families who depended on reduced prices for essential items.

According to insider sources, oral directives have already been issued to cease the subsidy, with formal written instructions expected shortly. This decision was made during a recent federal cabinet meeting, resulting in the removal of subsidies on essential goods like flour, ghee, rice, sugar, and pulses at Utility Stores.

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Earlier, the subsidy allowed these items to be sold at discounts of up to 25%, primarily benefiting those earning less than Rs40,000 per month. With the elimination of this financial support, Utility Stores will now sell products at standard market rates, depriving low-income households of much-needed cost savings.

The government plans to reallocate the subsidy funds to address electricity bill relief and other priorities, shifting focus to the ongoing energy crisis.

The sale of subsidized items at Utility Stores has already been halted, forcing many families to brace for increased prices in the weeks ahead.

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