The government has halted the implementation of a Rs50 billion subsidy on Utility Stores, a move that will impact approximately 26 million deserving families who relied on discounted prices for essential goods.
According to sources, the government issued oral orders to stop the subsidy, with written instructions expected to follow soon. The decision, taken during a recent federal cabinet meeting, means there will no longer be any subsidy on key staples such as flour, ghee, rice, sugar, and pulses at Utility Stores.
Previously, the subsidy provided up to 25% discounts on these five basic items, benefiting people earning less than Rs40,000 per month. With the removal of this financial aid, Utility Stores will now sell products at regular market rates, eliminating the cost savings that low-income families had depended on.
The government has decided to redirect the subsidy funds towards providing relief on electricity bills and other purposes, further emphasizing its focus on addressing the energy crisis.
The sale of discounted items at Utility Stores has already been stopped, leaving many households to cope with higher prices in the coming weeks.
