Pakistan to End Electricity Subsidies, Shift to Targeted Support

The government will end the slab-based electricity subsidy system, a move potentially influenced by IMF conditions, to address power sector distortions and circular debt. This reform aims to reduce high electricity costs for industrial and commercial users, who currently cross-subsidize lower-slab consumers. Subsidies will now be channeled to deserving households through the Benazir Income Support Programme (BISP). This structural reform could bolster Pakistan's fiscal health and potentially stabilize the Rupee, influencing USD/PKR rates and local gold prices.

بحوالہ / Source: www.brecorder.com