The targeted subsidy provided under the Benazir Income Support Program (BISP) for low-income consumers at Utility Stores across Pakistan has been discontinued, leading to a significant price hike in essential commodities.
The move has left millions of beneficiaries, particularly in regions like south Punjab and Karachi, struggling to afford basic necessities.
In Multan, Utility Stores that once offered subsidized goods to 600,000 BISP beneficiaries have seen a sharp decline in customer turnout as the prices of essential items such as flour, sugar, and ghee have skyrocketed.
Reports indicate that Utility Store sugar is now being sold at Rs155 per kg, whereas it is available at Rs135 per kg in the general market. Similarly, the price of ghee has risen to Rs450 per kg at Utility Stores, compared to Rs400 per kg in the general market.
The cost of a 10kg bag of flour has doubled, selling for Rs1,500 in stores, while it remains at Rs800 in the market.
The situation is equally dire in Karachi, where the subsidy for BISP beneficiaries has also been withdrawn and the rates of general consumers under the prime minister's relief package will be applicable.
These consumers, who earn less than Rs40,000 per month, are now being forced to pay general consumer rates for essential items. The price of sugar for BISP cardholders has surged from Rs114 to Rs160 per kg, and flour prices have spiked from Rs648 to Rs1,500 per kg. The price of ghee has also increased from Rs380 to Rs450 per kg, while the discount of Rs20 per kg on rice and pulses has been eliminated.
The removal of the subsidy has affected more than 600,000 people in Multan alone, leaving them vulnerable to the soaring prices.
