The government has proposed to increase subsidies on food items – including flour, rice, and pulses – by 300 percent.
The subsidy on flour and rice is likely to be increased from Rs25 to Rs100 per kilogram, while the subsidy on pulses is likely to be increased from Rs70 to Rs100 per kilogram.
Similarly, the government is also planning to increase the subsidy on sugar from Rs 25 to Rs 100 per kilogram. Meanwhile, the government also proposed to maintain the existing model of subsidy on flour under the Prime Minister’s relief package.
The summary of the new relief plan has been sent to the Economic Coordination Committee (ECC) for approval. The plan will be implemented after approval from the ECC and the federal cabinet.
The new relief package is expected to be launched on August 1. However, the previously announced prime minister’s relief package could not be implemented from July 1.
PM relief package extended at Utility Stores
Until the new package is launched, the existing prime minister’s package will continue. Under the existing package, subsidies are being provided on five essential items, including flour, sugar, ghee, rice, and pulses.
The government had allocated Rs65 billion for the utility stores and Ramadan package in the budget. Out of this, Rs10 billion was allocated for the prime minister’s Ramadan relief package, while Rs55 billion was allocated for the prime minister’s relief package for the current financial year.
In the previous financial year, Rs35 billion was allocated for the prime minister’s package.
Earlier on July 9, Prime Minister Shehbaz Sharif announced a Rs50 billion relief package for domestic electricity consumers using up to 200 units per month.
Addressing a ceremony on energy sector reforms in Islamabad, PM Shehbaz Sharif said that the government would not be increasing the electricity rates for protected customers who consume up to 200 units of power for three months.
“The domestic consumers who consume up to 200 units of electricity will get a subsidy for three months — July, August, September,” Prime Minister Shehbaz Sharif announced.
25 million domestic consumers which make up to 94 percent of the total domestic consumers will benefit from this package for three months of July, August, and September, he said.
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