The Punjab government has decided to withdraw the Rs14 per unit electricity subsidy for consumers in Islamabad Capital Territory (ICT), following pressure from the International Monetary Fund (IMF).
The decision, announced by the Islamabad Electricity Supply Company (IESCO), will affect the electricity bills for September. Residents of Islamabad and surrounding areas will now see their electricity bills calculated at higher rates, which were implemented by the federal government on July 1 in compliance with IMF conditions.
The federal government had raised electricity prices by up to 51% as part of the IMF’s loan program, although the loan approval is still pending.
Punjab Information Minister Azma Bukhari confirmed that the subsidy withdrawal applies to ICT consumers.
According to a notification from IESCO, the discontinuation of the Rs14 per unit subsidy for domestic single-phase consumers using between 201 and 500 units will take effect for the billing month of September. However, the subsidy will continue for consumers in Punjab until September 30.
Earlier, reports emerged that the IMF had directed all provinces to halt subsidies during the 37-month program period, with the existing Rs14 per unit subsidy set to expire by the end of September.
