Punjab govt funds Rs14 electricity subsidy amid rising energy costs

Marriyum Aurangzeb clarifies Punjab’s budget allocation amid criticism and rising power tariffs

ISLAMABAD: Senior Minister Marriyum Aurangzeb declared on Sunday that the Rs14 per unit electricity subsidy announced by the Punjab government would be fully financed through the province’s budget.

After enduring months of public outrage and criticism from the opposition over soaring electricity prices, the Punjab government revealed on Friday that consumers using up to 500 units would receive a Rs14 per unit subsidy in August and September.

This measure, widely perceived as an effort to strengthen PML-N’s support base in Punjab, was announced by the party’s president, Nawaz Sharif.

Speaking at a press conference in Islamabad today, Aurangzeb aimed to “dispel the false narratives” propagated by those she held responsible for the current economic challenges. “These falsehoods are sowing discord among provinces, so it’s crucial to clarify that the Punjab government is offering this relief from its own budget,” she emphasized.

Aurangzeb further explained that the subsidy is being financed by cutting down on expenditures and reallocating funds from various programs within the province. The energy department has provided estimates to assist the provincial government in meeting its financial goals, she added.

“Nawaz Sharif has also urged other provinces to reduce their expenditures and extend similar relief to their people,” she noted. “We would be pleased if provinces like Khyber Pakhtunkhwa, Sindh, and Balochistan could also offer comparable support.”

She highlighted that with better governance and policy reforms, the Punjab government has now reached a point where it can provide affordable roti (bread) to its people.

“Instead of acknowledging the reduction in power tariffs, misinformation and political agendas are being pushed,” Aurangzeb lamented.

Blaming the previous PTI government for the sky-high electricity prices, Aurangzeb absolved the current federal government of any fault. She listed several achievements of the Punjab government since it took office, including the Ramzan relief package and the laptop scheme, and urged other provinces to implement similar initiatives.

Amid rising electricity bills, the National Electric Power Regulatory Authority (Nepra) recently announced a further increase in electricity tariffs by Rs2.56 per unit, marking the second consecutive hike after a Rs3.33 per unit increase for fuel adjustment in May.

The higher tariffs have significantly impacted lifeline consumers (those using 51-100 units per month) and those in the protected category (up to 200 units per month), pushing them beyond their monthly consumption thresholds and resulting in higher charges than anticipated.

Monitoring Desk
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