Nine-month power sector subsidies surpass fiscal year 2011 annual target.

Byline: RIZWAN BHATTI

Despite federal government's pledge to reduce power sector subsidies, it surpassed the annual target which reached notable level of Rs 136.5 billion in the first nine months of fiscal year 2010-11. Sources told Business Recorder on Tuesday that in the initial months of past fiscal

year, the government was willing to reduce power base subsidies.

However, the spending of power subsidies reflect that it seems difficult for the government to minimise the power subsidies due to rising energy shortage. Under the agreement with International Monetary Fund (IFM) the federal government had agreed to phase out the power subsidies by increasing …