Last week, the Punjab government announced that the electricity tariff for households consuming up to 500 units per month would be reduced by PKR 14 per unit for August and September.
The move, which follows months of public outcry, protests and heavy criticism from the opposition over rising electricity prices, was announced in a press conference by the ruling party's president Nawaz Sharif and Punjab Chief Minister Maryam Nawaz.
During the press conference, Sharif said the subsidy would be funded by cuts in government spending and the province's Annual Development Plan.
However, he shared no details or the amount that would be needed to fund this relief.
The Punjab government then contacted the electricity distribution companies and asked them to estimate how much it would cost. According to the provincial government's own estimates, a total subsidy of PKR 45 billion will need to be provided.
It's important to mention here that the federal government has already announced that the tariff for consumers using up to 200 units would not be increased till September. This subsidy was estimated to cost the federal government PKR 50 billion, which would be funded by diverting money from the Public Sector Development Program.
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