ISLAMABAD: The federal government will start implementing Ramzan Relief Package of Rs7.492 billion through Utility Stores Corporation (USC) from March 4 2024 in order to provide relief to the targeted beneficiaries on 19 essential items.
The approval was granted by the meeting of the Economic Coordination Committee (ECC) of the Cabinet on a summary moved by the Ministry of Industries and Production.
Sources said that the Ministry of Industries in the proposal requested approval for the provision of subsidy to the targeted beneficiaries of BISP registered under PMT-60 with a net amount of Rs7.492 billion, adding that Rs5 billion have already allocated during the current fiscal year 2023-24 for Ramzan Relief Package-2024 and remaining Rs2.492 billion shall be re-appropriated from the current fiscal year budget allocations for Prime Minister Relief Package (PMRP).
ECC approves Rs7.492bn Ramazan package
The ECC was asked that the Finance Division may be directed to release the full amount of the projected subsidy for Rs7.492 billion for timely purchases and necessary arrangements to ensure availability of these items at USC outlets.
As Ramzan is expected to begin on 11th of March, 2024; therefore, the implementation date for the Ramzan Relief Package-2024 may be approved from 4th of March 2024 till the last day of Ramzan.
The Ministry of Industries stated that the government has been providing relief to the general public during Ramzan by way of selling 19 items at subsidised rates at outlets of USC, since 1991. The federal government has allocated Rs35 billion in budget for the financial year 2023-24 for subsidy on essential items for implementation of Prime Minister’s Relief Package 2023-2024 and Ramzan Relief Package 2024 through the USC.
The funds allocated during the current financial year include; (i) PMRP Rs30 billion and Ramzan Relief Package 2024 Rs5 billion that makes the total budget approval to Rs35 billion.
The sole purpose of the Ramzan Relief of Package is to provide maximum relief to the masses.
It further stated that due to the International Monetary Fund (IMF)‘s restrictions on un-targeted subsidies, the government has approved the provision of subsidy to the targeted beneficiaries of BISP registered under PMT (proxy means test)-40 for the fiscal year 2023-24 and the ECC has approved the continuation of PMRP on targeted subsidy model dated 7th August 2023. In compliance with the ECC’s decision, the USC has converted hybrid subsidy model to targeted subsidy which is being disbursed to the beneficiaries of BISP registered under PMT-40.
The USC is currently selling subsidised items to the 26.92 million households registered with BISP under PMT-40. In order to serve the maximum number of targeted beneficiaries during Ramzan-2024, it is proposed that 19 items subsidy be disbursed to targeted beneficiaries of BISP registered under PMT-60 instead of PMT-40 to serve additional 12.73 million households.
Copyright Business Recorder, 2024
Comments
Comments are closed for this article.