With the removal of these subsidies, there are fears that all utility stores may close down, putting the future of over 18,000 employees at risk. Previously, only individuals registered in the Benazir Income Support Program were eligible for subsidies at stores.

Utility stores were offering a 25% subsidy on five essential items.

The impact of this decision is evident in the steep price increases at utility stores. Previously, 1 kilogramme of subsidised ghee was sold at Rs380, but the current price is Rs450.

Reports said that the government has decided to redirect the subsidy funds towards providing relief on electricity bills and other purposes.