Govt Halts Rs. 60 Billion Subsidy for Utility Stores

The federal government has halted its monthly Rs. 4 billion subsidy for the Utility Stores Corporation, ending an annual Rs. 60 billion in subsidies to provide relief to consumers. ProPakistani learned that Rs. 50 billion of the total subsidy was allocated for the Prime Minister’s relief package, while the rest Rs. 10 billion was set aside for Ramadan. Although subsidies were provided at different rates for users of the Benazir Income Support Program (BISP), general consumers could also purchase items at reduced rates. Officials from the Utility Stores Corporation told ProPakistani that the government is revising its subsidy framework to improve transparency. Despite the withdrawal of subsidies at the state-run outlets, essential items will continue to be available to all consumers at the same rates, with income-free support for BISP users. The corporation has also lowered the prices of various branded goods and plans to ensure a steady supply of flour sourced from local mills. However, the future of the subsidy program remains uncertain, as the decision to restore it rests with the federal government. Authorities are exploring options to make the subsidy mechanism more efficient, while the corporation has been instructed to either boost sales or shut down stores that consistently operate at a loss.