The Punjab government has retracted its decision to provide a Rs. 14 per unit electricity subsidy for Islamabad residents just one month after the original announcement, following pressure from the International Monetary Fund (IMF).
Sources report that the Islamabad Electric Supply Company (IESCO) has released a notification declaring that the anticipated subsidy for September will not be applied to electricity bills for consumers in the federal capital. Additionally, IESCO has been directed to update its billing software to reflect the removal of subsidies.
The notification specifies that electricity bills for September will be calculated based on the rates effective from July 1. Speaking to the Express Tribune, Punjab Information Minister Uzma Bukhari stated that although the Punjab Chief Minister was keen to extend the subsidy to Islamabad, the IMF agreement’s constraints prevent further relief.
Despite Islamabad’s withdrawal, the subsidy will continue for Punjab’s electricity consumers until September 30, 2024. However, IESCO has yet to receive funds for the subsidies provided in August. Minister Bukhari added that efforts by Prime Minister Shehbaz Sharif and the Punjab Chief Minister to alleviate the burden on electricity consumers are ongoing.
The initial subsidy, endorsed by the Punjab government for August and September, aimed to lessen electricity costs for consumers using 201 and 500 units. This subsidy was part of a broader initiative announced by PML-N President Mian Nawaz Sharif and Punjab Chief Minister Maryam Nawaz Sharif during a press conference.
