Federal subsidies in Pakistan, particularly those directed towards the power sector, have raised significant concerns regarding transparency, effectiveness, and their impact on poverty alleviation.
For the fiscal year 2023-24, the initial budget allocated PKR 894 billion for electricity subsidies. However, revised estimates revealed a substantial reduction to PKR 584 billion, marking a 35% decline. Despite this reduction, overall subsidy spending exceeded the initial allocation by PKR 7 billion.
An allocation of PKR 310 billion, initially earmarked under the “Pakistan Energy Revolving Fund (PERA) + Government-Owned Power Plants (GPPS) + Additional” budget estimates for 2023-24, is conspicuously absent in the revised estimates, contributing to the decline.
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