The Punjab government’s recent decision to provide a Rs. 14 per unit subsidy on electricity bills for consumers using 201 to 500 units per month has sparked concerns about its sustainability and potential scrutiny from the International Monetary Fund (IMF). This relief measure, amounting to Rs. 45 billion, is intended to ease the financial burden on consumers during the peak summer months but is set to expire after September.
While experts view the move as a positive step to help middle-class households struggling with high electricity bills, questions remain about the source of funding and whether the IMF will seek explanations from the government. Economist Dr. Sajid Amin described the measure as a short-term fix, noting that the government may introduce further relief in the winter but emphasized the need for a long-term strategy to reduce energy costs.
The Punjab government has initiated communications with all five power distribution companies operating in the province, including Lesco, Fesco, Mepco, Gepco, and Iesco, to determine the funding required for this relief. This initiative, covering approximately 11.7 million consumers, aims to alleviate financial stress without adding to the energy circular debt. However, the IMF’s response to this subsidy, which is financed by reallocating funds from Punjab’s development budget, remains uncertain.
Story by Khalid Hasnain
