PM Shehbaz Sharif okays Rs7bn relief package for poor

ISLAMABAD: In the wake of economic hardships being faced by the poor, Prime Minister Shehbaz Sharif has approved an extension by two more months to the relief package. 

The package that provides basic necessities of life has an estimated cost of Rs7 billion. Through this package, atta, sugar, rice, pulses, and other items will be provided at subsidised rates.

The government has also decided not to further increase the prices of petroleum products. "PM Shehbaz Sharif has extended the Ramazan Package so the prices of basic necessities of life will continue till June 30, 2022. The government may grant approval to this package even in the next fiscal and we will move the summary to the Economic Coordination Committee (ECC) of the Cabinet,” top official sources confirmed while talking to The News Tuesday.

In consideration of economic hardship, the PM has granted approval for a massive relief programme for the poor. The price of atta has been slashed from Rs 950/20 kg to Rs 800/20kg while the market price is above Rs1,250/20kg. The price of sugar has also been reduced from Rs 85/kg to Rs70/kg through the USC.

The government is also subsidising ghee by Rs100/kg. Rice and pulses are also selling at a discount of Rs15/20 /kg from the market. It is important to mention that this is a historic relief package, which is more than 50 per cent higher than what was being offered by the previous government.

Israr Khan adds: The government on Tuesday kept the petroleum prices unchanged at home from June 1 through June 15, 2022, despite revenue losses due to higher crude prices in the international market.

An announcement of the Finance Division said: “With a view to provide maximum relief to the consumers, the Prime Minister of Pakistan has directed that the current prices of petroleum products as notified on 27th May 2022 shall remain unchanged, despite revenue losses due to rising petroleum prices globally.”

Earlier, on May 26, the government had increased the petroleum products prices by Rs30 per litre, aimed at reaching a staff-level agreement with the International Monetary Fund (IMF). The Fund is constantly asking the government to abolish the subsidy on the petroleum products and electricity to lower the fiscal deficit, which is one of the major concerns of the international lender regarding Pakistan’s economy.

After Rs30 per liter increase, ex-depot price pf petrol jacked up to Rs179.86 per liter, High-Speed-Diesel to Rs174.15 per liter, Light Diesel Oil (LDO) to Rs148.31 per liter, and Kerosene to Rs155.56 per liter.

It may be noted that despite the earlier Rs30 per liter increase, the government is still paying multi-billion rupees subsidy on POL prices to consumers, as the government is procuring crude at a high rate from the international market and selling it to the local consumers at low price.

The Global Benchmark Brent price was at $116.38/barrel on Tuesday. Earlier, on March 7, it hit US$139.13 a barrel. The all-time of $147.50 was last seen in July 2008.

A senior official told The News that following the IMF’s demand, the government may again increase the POL prices for the next fortnight to end the subsidy or minimize it.