Budget 2017-18: Federal government plans Rs 230 billion subsidy

KARACHI - The government is expected to give a subsidy of Rs230 billion during 2017-18 in a move to boost industrial activity and provide relief to common man.

According to sources close to the Ministry of Finance, the government is expected to propose Rs230 billion worth of subsidy and grants for the next fiscal year starting July 1, 2017.

The sources said that Rs118 billion would be proposed to energy sector which showed that government wanted to provide relief to the industries and residential users, giving them electricity tariff on moderate rate and they expect that crude oil prices might go up in next fiscal year, making the cost on higher side.

The government also plans to give subsidy of Rs37 billion to railways sector in order to minimize the losses and give timely payment to the staff of Pakistan Railways.

Similarly the government would allocate Rs4 billion for the staff of Pakistan Steel Mills.

As the holy month of Ramzan is approaching, the government like every year would give subsidy of Rs4 billion for the utility stores, keeping the price of edible products on the lower side to give more benefit to the masses.

It is learnt that Rs2 billion would be given for this Ramazan and another Rs2 billion for next fiscal year.

Beside this Rs500 million additional amount would be approved to give incentive on purchase of pulses.