The discontinuation of the targeted subsidy under the Benazir Income Support Program has led to a significant increase in prices for low-income consumers at Utility Stores across Pakistan.
This change has left millions struggling to afford essential items, particularly in areas such as south Punjab and Karachi.
In Multan, where Utility Stores previously provided subsidized goods to around 600,000 BISP beneficiaries, there has been a noticeable drop in customer turnout.
Essential commodities, including flour, sugar, and ghee, have seen sharp price hikes. Sugar, which was subsidized, is now priced at Rs155 per kg at Utility Stores, compared to Rs135 per kg in the general market. Ghee has increased to Rs450 per kg at Utility Stores, up from Rs400 per kg in the broader market.
Additionally, the price of a 10kg bag of flour has doubled to Rs1,500, while it remains Rs800 elsewhere.
The situation in Karachi mirrors the difficulties faced in Multan, with the withdrawal of the BISP subsidy resulting in higher costs for essential items.
Low-income consumers, earning less than Rs40,000 per month, are now paying general consumer rates. The price of sugar for BISP cardholders has surged from Rs114 to Rs160 per kg, flour has jumped from Rs648 to Rs1,500 per kg, and ghee has risen from Rs380 to Rs450 per kg.
The previously available discount on rice and pulses has also been removed.
The removal of this subsidy has impacted over 600,000 people in Multan alone, exacerbating their financial strain as they face inflated prices for basic necessities.
