Govt to continue subsidies for export, power sectors in upcoming budget

Rs660bn likely to be allocated as subsidies for export industries, power sector, sugar and wheat industries, and utility stores

ISLAMABAD: The federal government has decided to continue subsidies for the export industries and power sector in the budget for the next fiscal year.

According to sources, the government is likely to allocate Rs660 billion as subsidies for export-oriented industries as well as for the power sector, sugar and wheat industries, and utility stores. Sources said that the government is likely to allocate Rs50 billion for exports whereas Rs 425 billion will be allocated to the power sector in the next fiscal year’s budget. 

For the outgoing fiscal year, the government had allocated Rs450 billion in subsidies. 

The government is likely to provide electricity at 7.5 cents per unit and RLNG (Regasified Liquid Natural Gas) at $6.5 per MMBTU to the export industry which has around Rs50 billion impact in a year.

The power sector subsidy will also target circular debt as well as payments to independent power producers (IPPs), besides protecting the vulnerable segments of the society. 

“The government is also gathering the data of vulnerable segments of society through the Ehsaas programme and this exercise would be completed in the next year,” sources added. They further said that the government will also increase the budget for the Ehsas Kifalat programme from Rs200 billion to Rs250 billion.

It is pertinent to note that the International Monetary Fund (IMF) in its latest review of Pakistan’s economy projected Rs530 billion subsidies in the next budget.


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Shahzad Paracha
Shahzad Paracha
The writer is a member of Pakistan Today's Islamabad bureau. He can be reached at [email protected]


  1. Forthcoming budget is anxiously awaited. Although some economic difficulties are hard to manage when they get out of control especially the inflation.

    Only two measures can help it in the short run i.e. Raising the common person salaries, and injecting the Government subsidies. These two measures usually help to off-set the inflation.

    Hopefully, it seems that Government this time is really working hard on it. Lets hope for the best.

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