Govt working on mechanism to give targeted subsidy on electricity

By: INP      Published: 11:54 PM, 18 Jul, 2020
Govt working on mechanism to give targeted subsidy on electricity
–File photo

The government will use the data collected for the Ehsaas Emergency Cash Programme to identify beneficiaries as it prepares to introduce a rationalised mechanism for provision of subsidy to poor people on electricity.

According to a top Finance Ministry official, Pakistan has to share a tangible plan with the International Monetary Fund (IMF) for mobilisation of tax revenues and eliminating the circular debt besides proposing amendments to the State Bank of Pakistan (SBP) and Nepra Acts to put the stalled programme back on track.

The official said that power sector subsidies declined by 60% in the budget 2020-21 that means a targeted subsidies mechanism would be introduced.

To do this, the Ministry of Finance has given six months to the Military Accounts to bring all pensioners from the manual to direct credit system (DCS). There are apprehensions that all pensioners have not been converted from manual to DCS, which means ghost pensioners still exist in the system.