ISLAMABAD – The federal government has discontinued a subsidy on electricity bills to agriculture consumers in order to meet conditions placed laid forth by the International Monetary Fund (IMF) to revive the loan programme.
A notification issued by the Power Division states, the “Federal Cabinet […] has approved the Discontinuation of Kissan Package for base rate relief of Rs3.60/kWh to private agriculture consumers from 1st March 2023”.
In October last, Prime Minister Shehbaz Sharif announced a Kissan Package for the farmers to help them recover after massive floods wreaked havoc across the country. The power subsidy of Rs3.60 per unit at the base tariff was implemented by the National Electric Power Regulatory Authority (NEPRA) in December last year. The move reduced the base rate to Rs13 per unit from previous full price of Rs16.60.
However, the subsidy has been withdrawn two months after it was implemented as the South Asian country facing economic crisis amid depleting foreign exchange reserves.
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