ISLAMABAD   -  The Utility Stores Corporations of Pakistan has stopped the sale of subsidized items under the Prime Minister Relief Package, depriving millions of poor families of essential items on discount prices.

“The Utility Stores Corporation of Pakistan has received orders to stop the sale of subsidized items and until the situation is clear, the sale will remain closed under the Prime Minister’s package,” official source told The Nation.

Notably, on August 15, a press statement issued to the media stated that the meeting of the Economic Coordination Committee of the Cabinet has approved the continuation of the Prime Minister Relief package for 2024-25.

However, later the Federal Cabinet deferred the matter of the relief package. In the absence of clear directives from the Cabinet, the Utility Stores Corporation has stopped the sale of subsidized item to millions of poor families with immediate effect from Wednesday, said the source.    

Utility Stores Corporation (USC) is providing five essential items on subsidized rates, since January, 2020, under Prime Minister’s Relief Package (PMRP). Under the relief package essential commodities including sugar, ghee, flour, rice, pulses were being given to BISP users at utility stores across the country at subsidized rates.

For the FY 2023-24, the Federal Cabinet had granted approval of Rs.35 billion till 30 June 2024 as Targeted Subsidy Model which was successfully implemented by the USC.

For the ongoing Fiscal Year, the Federal Government has allocated Rs.60 billion in the budget for the financial year 2024-25 under Prime Minister’s Relief Package and Ramazan Relief Package 2024.

As the amount of subsidy is to be utilized to provide relief to poor segments of the society; which is mapped through Benazir Income Support Program (BISP) data. Five essential items have been provisioned for targeted population up to PMT-40 registered with BISP on subsidized rates. The existing subsidy  is Rs2734/per month for FY 2023-2024  whereas, proposed revised subsidy for FY-2024-25 is Rs. 3650/per month with the increased amount of Rs. 916/per month @ of 25.09 % increase in overall subsidy per house hold.