Govt Ends Subsidies on Essential Items At Utility Stores

The federal government has directed to end all subsidies on essential food items at Utility Stores Corporation (USC), dramatically increasing the prices of staples like flour, ghee, sugar, pulses, and rice.

This abrupt withdrawal of subsidies has left vulnerable groups without critical financial relief.

Sources told ProPakistani that utility stores are included in the privatization list, and a decision regarding their future is yet to be made. Previously, subsidies were provided to individuals with a monthly income of less than Rs. 40,000. The recent decision to halt subsidies was made during a recent federal cabinet meeting.

The price of 1 kg of ghee has increased from Rs. 380 to Rs. 450, while a 10-kg bag of flour now costs Rs. 1,500, up from Rs. 648.

Sugar prices increased from Rs. 109 to Rs. 160 per kg, and the price of rice rose from Rs. 320 to Rs. 340. Pulses have also seen significant price hikes, with Daal Chana and Daal Moong now selling at Rs. 260 and Rs. 330 per kg, respectively, and white channa at Rs. 380/kg.

The immediate impact on consumers is already severe, with prices at USC now nearly identical to those in open market shops.

The Economic Coordination Committee (ECC) recently approved a higher rate of monthly subsidies for the USC per household, alongside a turnover tax of 1.25 percent on the corporation.