Islamabad citizens to not get subsidy on electricity bills: IESCO

Islamabad citizens will not benefit from the electricity subsidy announced by the Punjab government last month, according to a notification issued by the Islamabad Electric Supply Company (IESCO).

Amid public anger over skyrocketing electricity bills, the Punjab government had announced that consumers using up to 500 units per month would be given a relief of PKR 14 per unit in their bills for August and September.

The decision affected 150,000 consumers in Pakistan's capital city.

However, a notification issued by IESCO dated Sept 4 that has been seen by Nukta stated that the relief was being discontinued.

The withdrawal comes as the country faces a delay in receiving approval from the International Monetary Fund's (IMF) Executive Board for a new $7 billion loan program.

The international lender had asked the government to cut back on its spending, broaden the tax base, and privatize loss-making state-owned companies, among other conditions.

According to reports, the IMF had directed that the federal and provincial governments would not be allowed to offer any subsidies on gas and electricity bills for the duration of the loan program.

The subsidy announced by the government for Islamabad citizens would have cost around PKR 2.9 billion for September, according to Nukta's calculations.