The government has earmarked a total Rs699 billion worth subsidies for various sectors out of which Rs490 billion worth subsidies have been proposed only for the power sector in the budget for fiscal year 2022-23.
According to budget documents Rs490 billion worth subsidy has been proposed for the power sector out of the total Rs699 billion worth subsidies for next FY 2022-23.
As per details, Independent Power Producers (IPPs) will receive Rs180 billion worth subsidy, while Power Holding Private Limited (PHPL) will obtain Rs35 billion subsidy during the FY 2022-23 and Rs225 billion has been allocated for Inter-DISCO tariff differential.
Similarly, Rs3 billion subsidy is proposed for tariff differential to Azad Jammu and Kashmir, Rs7 billion subsidy is earmarked for industrial support package, and Rs20 billion subsidy is allocated for the zero-rated industrial subsidy. Likewise, K-Electric (KE) will receive Rs80 billion subsidy out of which Rs60 billion subsidy is for KE’s tariff, Rs13 billion for industrial package and Rs7 billion subsidy is for tube well. Furthermore, the government has earmarked Rs71 billion worth subsidy for petroleum products out of which Rs40 billion subsidy is for Liquefied Natural Gas (LNG) and Rs6 billion subsidy is for Pakistan State Oil (PSO) and APL liabilities and others while Rs25 billion worth subsidy is for the domestic consumers through Price Differential Claims (PDC) (PM Package) during the next FY 2022-23.
It is also learnt from the budget documents that the government has allocated Rs7 billion subsidy for PASSCO out of which Rs2 billion subsidy is for wheat operations and Rs5 billion subsidy is for wheat reserved stock.
As per documents, the government has earmarked Rs17 billion worth subsidy for Utility Store Corporation (USC) out of which Rs6 billion subsidy is for Ramzan Package and Rs12 billion subsidy is allocated for USC (PM Package).
It is pertinent to mention that the government has allocated Rs34 billion worth subsidy for various sector out of which Rs8 billion worth subsidy is allocated for wheat subsidy to Gilgit-Baltistan, Rs4 billion subsidy is for metro bus subsidy, Rs15 billion worth subsidy is assigned for fertiliser plants, Rs500 million subsidy is for Naya Pakistan Housing Authority and Rs500 million for mark-up subsidy for Naya Pakistan and Rs6 billion subsidy is allocated for imports of urea during the next fiscal year 2022-23.
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