By IANS,
Islamabad : Pakistan’s finance ministry has proposed the withdrawal of all subsidies from the next fiscal year due to the prevailing economic situation, a media report said Wednesday.
Dawn reported that the budget proposals submitted to the National Assembly’s Standing Committee on Finance says that Rs.186 billion subsidy on electricity would not continue and power tariff will be hiked in the coming fiscal.
The proposals also include withdrawal of other subsidies that total about Rs.43 billion from the next fiscal, the media report said.
It was estimated that inflation will be 12 percent during the next fiscal year due to economic measures and cutbacks.
The committee members were informed that stringent steps were required as the country would have to pay $1.3 billion as instalments to the International Monetary Fund (IMF) from the next fiscal year.