Ramadan package worth Rs7.6bn approved by ECC

• Economic Coordination Committee (ECC) approves a Ramadan package worth Rs7.6 billion in a meeting chaired by Finance Minister Hafeez Shaikh.
• Finance ministry sources say subsidies on 19 essential items at Utility Stores Corporation (USC) were approved.
• Sources further note that the budget for the Ramadan package was increased due to a rise in the ghee prices.

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ISLAMABAD: A Ramadan package worth Rs7.6 billion was approved Wednesday by the Economic Coordination Committee (ECC) following a meeting chaired by Finance Minister Abdul Hafeez Shaikh.

According to sources in the finance ministry, subsidies for 19 essential items at the Utility Stores Corporation (USC) were approved during the ECC meeting. In addition, technical grants for seven different institutions were also greenlit.

Read more: Govt mulling Ramadan package of nearly Rs6.3 billion for Utility Stores

Sources informed Geo News that the budget for the Ramadan package was increased due to a rise in the ghee prices.

Earlier, it was reported that the ECC would consider a 20-point agenda during its Wednesday meeting. The document stated that a summary of a Ramadan relief package 2021 worth more than Rs36 billion was to be presented.

The agenda document further noted that the Power Division would issue a notification of fuel adjustment charges from November 2019 to June 2020 and that the ECC would review the National Electric Power Regulatory Authority's (NEPRA) decision to increase electricity prices.

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The ECC was also to review the expenditure of the power distribution companies' employees and pensioners, NAB's investigation into an agreement signed with the independent power producers (IPPs), as well as summaries of the provision of subsidies to the power sector, tax exemption on import of raw materials for auto-disable syringes, and importing raw cotton via the Torkham border.

It was reported last week that the PTI government was pondering a nearly Rs6.3-billion Ramadan package for the USC and had proposed subsidies of Rs20 per kg on dates, Rs10 per kg on basmati and sela rice, a Rs12 subsidy on tota rice, a Rs25 per 1,500ml bottle of beverages, a Rs20 per 800ml bottle of drinks, Rs50 on tea, and Rs20 on milk, among others.

Also read: Pakistan annual inflation drops from 8% to 5.65% in January 2021

The proposal was sent to the ECC meeting earlier today.

It had also recommended bringing sugar prices down to Rs68 per kg, a 20kg bag of flour to Rs800, and ghee to Rs200 a kilo.