Monday, December 4, 2023

Government proposes Rs6.37bn Ramadan relief package

ISLAMABAD: Unlike previous years, the incumbent government is going to propose an Rs6.37bn Ramadan relief package this year.

According to the details, the Ministry of Industry and Production (MoIP) proposed to the Economic Coordination Committee (ECC) the approval of a record Ramzan relief package of Rs6.37 billion for 2021.

Furthermore, Sources at MoIP said that under the proposed relief package, to be offered through the chain of utility stores, the government would give a subsidy of around Rs40 per kilo in sugar, banaspati ghee, and wheat flour.

The chairperson of ECC Finance Minister Abdul Hafeez Shaikh is also likely to approve the historic relief package soon, they added.

According to a MoIP official, the average of the Ramzan relief package over the past 10 years has ranged from Rs1.5 to Rs 2.5 billion, while this government is giving a package of Rs 6.3bn.

“The bailout package last year was Rs 2.5 billion and the average savings for consumers remained at Rs10 – Rs15 on several items. However, this year there will be a need for serious intervention to control the prices of oil and vegetable ghee, sugar, and even wheat flour ”, he added.

Prices of Items in Ramadan Relief Package:

Sources said the relief package would include a price cut of 14 essential items by 10% to 15% at utility stores, as well as the sale of five items at subsidized prices.

The prices of ghee and oil were varying between Rs250 and Rs300 per kg/liter in the open market, but the rates in the utility stores were Rs170-Rs175 per kg/liter.

However, the government has already raised rates to Rs200 per kg/liter and the new rates must be implemented in conjunction with the Ramzan package.

The Ramazan relief package will begin on April 1 and continue on May 15.

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