The Punjab government has decided to withdraw the Rs14 per unit electricity subsidy for consumers in Islamabad Capital Territory (ICT), following pressure from the International Monetary Fund (IMF).
The Islamabad Electricity Supply Company (IESCO) announced that the change would affect electricity bills for September, as residents of Islamabad and surrounding areas will now see higher rates, initially implemented by the federal government on July 1 in compliance with IMF conditions.
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The federal government had increased electricity prices by up to 51% as part of the IMF’s loan program, despite the loan’s pending approval. Punjab Information Minister Azma Bukhari confirmed that the subsidy withdrawal applies to ICT consumers.
IESCO’s notification highlighted that the discontinuation of the Rs14 per unit subsidy for domestic single-phase consumers using between 201 and 500 units will take effect in September’s bills. However, the subsidy for Punjab residents will remain in place until September 30. The IMF had earlier directed provinces to end subsidies during the 37-month program, with the Rs14 per unit subsidy set to expire at the end of September.