Pakistan govt to increase subsidy for poor families by PKR 916 per month

Pakistan's highest economic decision-making body — the Economic Coordination Committee (ECC) — approved an increase of PKR 916 per month in the subsidy offered to poor families under the Prime Minister's Relief Package.

The subsidy, which was set at PKR 2,734 in fiscal year 2023-24 (FY24) will be increased to PKR 3,650 for FY25. Under the relief package, families identified through the Benazir Income Support Program will be able to buy five essential items on reduced rates through the Utility Stores Corporation.

The proposal, which was submitted by the Ministry of Industries and Production, was approved during a meeting chaired by Finance Minister Muhammad Aurangzeb in Islamabad on Thursday.

The proposal suggested that the Relief Package be offered for a period of 10 months from Aug 1, 2024 to June 30, 2024, excluding the month of Ramazan.

The government has budgeted PKR 60 billion for the Prime Minister's Relief Package and Ramazan Relief Package in FY25.

Warehousing and logistic sector

During the meeting, the ECC also approved another proposal of the Ministry of Industries and Production to give the warehousing and logistic sector industry status.

Earlier this year, the Karachi Chamber of Commerce and Industry had briefed Prime Minister Shehbaz Sharif on issues leading to slowdown of business and investment, which included impediments faced in declaring warehousing sector as an industry.

The prime minister had directed that consultations be held to resolve the issues.

The modern warehousing and logistics sector — warehousing through cool chains, cold storages and temperature control units supported by specialized logistics — is an essential industry that supports agriculture, manufacturing industry, trade and services.

Value-added supply chain solutions, technical support and specialized services rendered by modern warehouses through their purpose-built facilities support business development, e-sports and ultimately, contribute to Pakistan's economic prosperity.