Government ends subsidies on essential items at utility stores

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

This abrupt withdrawal of subsidies has left vulnerable groups without essential financial assistance.

Sources told ProPakistani that the utility shops are included in the privatisation list and no decision has been taken yet regarding their future. Earlier, the subsidies were given to people with a monthly income of less than Rs 40,000. The recent decision to end the subsidies was taken in a recent meeting of the federal cabinet.

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

Sugar prices have increased from Rs 109 to Rs 160 per kg, and rice prices have increased 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 per kg.

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

The Economic Coordination Committee (ECC) recently approved a higher rate of monthly USC subsidies per household, as well as a 1.25% turnover tax on companies.

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