ISLAMABAD, Aug 9: Dr Murtaza Mughal, President, Pakistan Economy Watch (PEW), has said that the difference in buying power of different segments of society has made subsidies ineffective to some extent and whole system should be modified for improvement in socio-economic conditions of the majority.

In a statement, he said some faults have been detected in the subsidy regime that keeps poor on the disadvantage while the rich are benefiting from it.

He said buying power of comfortable people and that of average person is different, therefore, they should not be treated equally and the government should redesign its massive subsidy regime. Low prices give rich incentives to use things uselessly.

Government claims to provide subsidy of Rs1 billion on petroleum products on daily basis but the rich benefits most from it,” he said.—PPI