Major subsidy hike on commodities at utility stores on the cards

ISLAMABAD: On the instructions of Prime Minister Shehbaz Sharif, a comprehensive plan has been prepared to provide substantial relief to citizens in the shape of subsidies on essential commodities at the outlets of the Utility Stores Corporation of Pakistan.

The proposal includes up to 300 per cent increase in subsidies on pulses, rice and other commodities at utility stores’ outlets under the prime minister’s new relief package.

Sources said that the new relief package aims to offer greater relief on essential commodities at utility stores, including pulses, broken rice, ghee and sugar.

According to the sources, if the proposals are implemeted, the subsidy on dal channa will be increased from Rs25 to Rs100. Additionally, the relief on ghee will be hiked from Rs70 to Rs100 per kilogram, and the subsidy on sugar will also see a substantial increase.

According to the sources, the federal government plans to bear the financial burden of these subsidies, ensuring that essential goods are sold to citizens at significantly reduced prices.

A summary of the prime minister’s new package has been submitted to the Ministry of Industries and Production for approval by the Economic Coordination Committee (ECC).

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The proposed plan suggests implementing the new model of the prime minister’s package starting August 1, following the approval of the ECC and the federal cabinet.

Until the new package come into force, subsidy will be provided on essential items under the existing prime minister’s package.

The prime minister’s relief package offers subsidies on five basic commodities —sugar, ghee, flour, rice, and pulses — at utility stores for Benazir Income Support Program (BISP) card holders.

For the current financial year, Rs55 billion have been allocated for the prime minister’s relief package, compared to Rs35 billion allocated in the previous financial year.