Prime Minister Shehbaz Sharif has announced on Tuesday a Rs50-billion energy subsidy package for low-income households that consume less than 200 units of electricity.

“For the next three months – July, August and September – their bills will be Rs4 to Rs7 per unit,” he said.

“Around 92% of the domestic consumers will benefit from the package,” the PM added.

The premier had earlier mentioned this number to be 94%, but later in the press conference used the figure of 92%.

“An amount of Rs50 billion will be spent on this package, which will be deducted from the PSDP fund. The consumers of K-Electric will also be included in this.”

Earlier, Business Recorder, citing its sources, had reported that the government is likely to further cut the Public Sector Development Programme (PSDP) 2024-25 to increase subsidy for the protected categories of domestic consumers due to massive overbilling across the country.

“This will be another cut in the PSDP 2024-25 after the Rs250 billion cut in the total PSDP of Rs1.4 trillion meant to create fiscal space to give relief to the most affected people without compromising the deal with the International Monetary Fund (IMF),” the report from Business Recorder added.

PM Shehbaz, sitting alongside deputy prime minister and foreign minister Ishaq Dar as well as defence minister Khawaja Asif, said it is time for the “elite to sacrifice”.

“The package will help alleviate issues of the common man.”