Govt to offer sector-specific subsidies in upcoming budget

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ISLAMABAD: The federal government has decided to offer subsidies only for “targeted sectors” in the next fiscal year, sources revealed on Monday.

According to details, the government would refrain from giving broad-based subsidies in the next fiscal year, whereas it would target sectors such as housing, power, export and food security, for subsidies.

Sources said that the government would lower the subsidies by up to Rs70 billion for FY21 as compared to the ongoing fiscal year. The government had allocated around Rs50 billion subsidies this year due to the corona pandemic.

They said the government might end the subsidy for those consuming up to 300 units electricity, adding that the economic team is also considering giving gas and power subsidy to people through BISP card, besides allocating around Rs200 billion for the PM’s Ehsaas programme.

In addition, sources said that the Utility Store Cooperation (USC) subsidy would also be provided through the BISP database.

Sources said that the government would allocate around Rs30 billion for Naya Pakistan Housing Project, as promised earlier by the prime minister.

It may be noted the government had allocated Rs31 billion for food security, Rs3 billion for exporters and Rs145 billion for power sector subsidiaries for the current fiscal year. The overall subsidy in the ongoing fiscal year was Rs191 billion.

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