Islamabad: The government is looking to change the mechanism for the provision of subsidies on electricity and gas to the public; intending to provide targeted subsidies instead of general offerings, a news source reported.
Currently, it provides subsidy based on the number of units consumed by the users of gas and electric appliances. Under the new system, the subsidy will be provided for specific individuals under the Ehsaas programme. To facilitate this measure, the government has allocated PKR 124 billion for subsidising electricity bills as against PKR 201 billion announced last year (revised upwards from 191 billion following the coronavirus spread).
The government has also been providing gas on subsidised rates to the export-oriented sector, whereas domestic consumers also get subsidies on locally produced gas. Under the new mechanism, the subsidies will be based on a survey.
The Ministry of Finance is working on developing the new mechanism. Advisor to the Prime Minister on Finance and Economic Coordination Committee (ECC) Chairman Abdul Hafeez Shaikh recently revealed that proposals were being drafted to ensure that subsidies go to the intended beneficiaries.
