ECC approves Rs60 billion relief package to offset rising prices

By Staff Reporter

ISLAMABAD: The government has increased its relief package by 71 percent to Rs60 billion to shield the poor, as it grapples with a slowing economy and high food prices that are eroding household purchasing power.

The decision, taken by the Economic Coordination Committee (ECC) on Thursday, raises the subsidy on five essential goods – wheat flour, rice, sugar, ghee, and pulses – sold through the state-run Utility Stores Corporation.

The allocation is a significant increase from the previous Rs35 billion, reflecting the escalating costs of essential goods over the past year.

“The Committee approved the proposal presented by the Industries and Production Division to continue the Prime Minister’s Relief Package for FY 2024-25 through Utility Stores Corporation with revised price and subsidy,” a government statement said.

The package, funded from existing budget allocations, aims to offset the impact of inflation, which averaged 23 percent in the last fiscal year. The move provides some respite for poorer households, but the majority of the population will continue to face market-driven prices.

Subsidies will increase by one-fourth to 3,650 rupees per household, with benefits including 1,700 rupees per 20kg bag of wheat flour, 50 rupees per kg for sugar, and 100 rupees per kg for ghee. The total allocation includes Rs10 billion for the Ramazan Relief Package and Rs1 billion to cover tax on the subsidy.