Mohsin Siddiqui (Chief Reporter)
The federal government is poised to initiate the implementation of the Ramzan Relief Package, valued at Rs7.492 billion, through the Utility Stores Corporation (USC) starting March 4, 2024. This strategic move aims to extend relief on 19 essential items to targeted beneficiaries.
Approval for this initiative was granted during a meeting of the Economic Coordination Committee (ECC) of the Cabinet, following a summary presented by the Ministry of Industries and Production.
Sources revealed that the Ministry of Industries proposed the provision of subsidy to targeted beneficiaries registered under PMT-60 of the Benazir Income Support Program (BISP), amounting to Rs7.492 billion. Of this, Rs5 billion had already been allocated during the current fiscal year 2023-24 for the Ramzan Relief Package-2024, while the remaining Rs2.492 billion would be re-appropriated from the budget allocations for the Prime Minister Relief Package (PMRP).
The ECC was urged to direct the Finance Division to release the entire projected subsidy amount of Rs7.492 billion promptly, facilitating timely purchases and ensuring the availability of subsidized items at USC outlets.
With Ramzan expected to commence on March 11, 2024, the implementation of the Ramzan Relief Package-2024 is slated to begin from March 4, 2024, and extend until the conclusion of Ramzan.
Highlighting the government’s longstanding commitment to providing relief during Ramzan, the Ministry of Industries underscored that subsidized rates on 19 items have been offered at USC outlets since 1991. For the fiscal year 2023-24, the federal government has earmarked Rs35 billion for the subsidy on essential items, covering both the Prime Minister’s Relief Package 2023-2024 and the Ramzan Relief Package 2024 through the USC.
In compliance with the International Monetary Fund (IMF) restrictions on un-targeted subsidies, the government has directed subsidies to targeted beneficiaries registered under PMT-40 and PMT-60. The USC has shifted from a hybrid subsidy model to a targeted subsidy model, catering to beneficiaries of BISP registered under PMT-40 and now proposed under PMT-60.
Currently, USC serves subsidized items to approximately 26.92 million households registered under PMT-40. To extend assistance to additional households during Ramzan-2024, subsidies on 19 items will be disbursed to targeted beneficiaries registered under PMT-60, potentially reaching an additional 12.73 million households.
