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ISLAMABAD  - The government has allocated Rs 174.7 billion as subsidies for FY2018-19 as against the revised estimates of Rs 147.6 billion of the outgoing financial year, showing an increase of 18.4 percent.

According to the documents, the government has given Rs 134 billion subsidy to the power sector for the next fiscal year, which was only Rs 81.5 billion during the outgoing year.

The breakup of Rs 134 billion showed the government earmarked Rs 105 billion for inter-Disco tariff differentials as compared to Rs 57 billion for the outgoing year. The government allocated Rs 5 billion as subsidy for tariff differentials for agriculture tube-wells in Balochistan and Rs 12 billion subsidy to pick up Wapda/Pepco receivables from Fata.

Meanwhile, an amount of Rs 15.4 billion has been earmarked for KESC for FY2018-19 as compared to Rs 33.5 billion for FY2017-18.

Similarly, the government has increased the subsidy given at the Utility Stores Corporation from Rs 4 billion to Rs 6 billion for the next year. The government has kept Rs 2 billion for the Ramazan package, Rs 3 billion for the sale of sugar at state-run stores and Rs 1 billion for the sale of pulses, rice, tea etc.

Meanwhile, the government has also increased the subsidy amount for Passco to Rs 19.05 billion from Rs 17.55 billion for the upcoming financial year. The government has kept Rs 1.5 billion for wheat operation, Rs 5 billion for wheat-reserved stock, Rs 8.05 billion for wheat supplied to Gilgit-Baltistan and Rs 1.5 billion for wheat export support.

According to the budget documents, the government has withdrawn subsidy on fertilizers for the next fiscal year as it allocated massive Rs 10 billion in the outgoing year. It has also allocated Rs 300 million subsidy for the sale of wheat in Fata. The government has allocated Rs 1 billion for National Food Security and Research Division for the next fiscal year.