ISLAMABAD - Owing to pressure from International Monetary Fund, the federal government has terminated electricity subsidies worth Rs 65 billion to industrial and agriculture sectors jacking up the electricity price by Rs 12.13/unit and Rs 3.60/unit respectively for both the sectors. The government has discontinued electricity subsidies to Zero-Rated Industry (ZRI) and Kissan Subsidy Packages from March 1, 2023, official source told The Nation yesterday. The Power Division has written a letter to the power distribution companies including K-Electric to implement the decision, the source said. Under the pressure of the IMF, the government has terminated the subsidies, four months earlier than its scheduled completion, given to farmers under Kissan Package and Zero-Rated Industry (ZRI). The government of Pakistan is providing relief to the electricity consumers in the form of different subsidy schemes. Under the proposed action plan to deal with the subsidy issue, it has been decided to revise the base case assumption of allocation Rs355 billion subsidy for FY 2023. It has been decided that the Zero-Rated Industry (ZRI) and Kissan Subsidy Packages will be discontinued from 1st March 2023. It has also been decided under IMF pressure, that from 1st March, the government will discontinue the subsidy of Rs 65 billion for export (Zero Rated Industry) and agriculture sectors. The decision to discontinue the subsidy will have an impact of Rs51 billion on the export oriented industries and Rs14 billion on agriculture sector under the Kissan package, the source maintained. It is worth to mention here that the incumbent government had approved Kissan Package for private agriculture consumers across Pakistan allowing a relief of Rs3.60 per unit to farmers in their current base rate of Rs16.80 per unit.
Nigeria's ruling party candidate Tinubu elected president