The government has suspended the planned Rs50 billion subsidy for Utility Stores, a decision that will affect around 26 million families who depended on reduced prices for essential items.
Sources reveal that the government has issued verbal orders to halt the subsidy, with formal written instructions expected soon. This decision, made during a recent federal cabinet meeting, means there will no longer be subsidies on essential goods such as flour, ghee, rice, sugar, and pulses at Utility Stores.
Previously, the subsidy offered up to 25% discounts on these five key items, benefiting those earning less than Rs40,000 per month. With the withdrawal of this support, Utility Stores will now sell products at standard market rates, removing the cost savings that low-income families relied on.
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Moreover, the government intends to redirect the subsidy funds to provide relief on electricity bills and other areas, highlighting its focus on the energy crisis.
Discounted item sales at Utility Stores have already been discontinued, leaving many households to manage with rising prices in the coming weeks.
