The targeted subsidy provided under the Benazir Income Support Program (BISP) to low-income consumers at Utility Stores across Pakistan has been discontinued, leading to a significant increase in prices of essential commodities.
The move has left millions of beneficiaries, especially in regions like southern Punjab and Karachi, struggling to meet basic needs.
In Multan, Utility Stores, which once offered subsidized goods to 600,000 BISP beneficiaries, have seen a sharp decline in customer participation as prices of essential items like flour, sugar and ghee have skyrocketed.
Reports suggest that Utility Store sugar is now selling at Rs 155 per kg, while it is available at Rs 135 per kg in the regular market. Similarly, the price of ghee rose to Rs 450 per kg in convenience stores compared to Rs 400 per kg in the general market.
The price of a 10kg bag of flour has doubled and is being sold at Rs 1,500 in shops, while it remains at Rs 800 in the market.
Equally dire is the situation in Karachi, where the subsidy for BISP beneficiaries has also been withdrawn and rates for ordinary consumers will be charged under the Prime Minister’s relief package.
These consumers who earn less than Rs 40,000 per month are now forced to pay general consumer rates for basic items. Sugar price for BISP card holders increased from Rs 114 to Rs 160 per kg and flour prices increased from Rs 648 to Rs 1,500 per kg. The price of ghee has also been increased from Rs 380 to Rs 450 per kg, while the Rs 20 per kg discount on rice and pulses has been removed.
The removal of subsidies has affected more than 600,000 people in Multan alone, leaving them vulnerable to soaring prices.
