PM Imran Khan's Rs120bn subsidy package: All you need to know

ISLAMABAD: Prime Minister Imran Khan on Wednesday addressed the nation and announced a “historic” relief package worth Rs120 billion to mitigate the hardships of the inflation-hit public.

The prime minister announced Rs120 billion relief package to provide essential commodities to 130 million people at subsidized rates.

Under the package, he said, 30 per cent subsidy would be given on ghee, flour, and pulses for the next six months.

“You will be able to buy flour, ghee and pulses at 30pc lower prices,” the prime minister announced.

The prime minister, in his televised address to the nation, said 20 million families would benefit from the subsidy package to be funded jointly by the federal and provincial governments.

Ehsaas Rashan Programme

The Rs120bn relief package, described as Ehsaas Rashan Programme, will provide benefit to 20 million families identified through the recently completed Ehsaas survey.

Ehsaas Rashan will provide a subsidy of Rs 1,000 a month to each of the 20 million families on the purchase of flour, pulses, ghee/cooking oil. A 30% subsidy will be given on these three items.

The programme has been designed as a precision-target system of subsidy delivery focusing on deserving beneficiaries to provide financial assistance for the purchase of essential commodities at a discount through digitally processed transactions.

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Ehsaas has developed a digitally enabled mobile point of sale system in collaboration with the National Bank of Pakistan (NBP) to serve beneficiaries through a network of Kiryana stores designated by NBP, all over the country.

Ehsaas and the National Bank of Pakistan have developed a technology-led, targeted subsidy disbursal program. For online registration of beneficiaries, Ehsaas will open a registration portal next week.

Who can benefit from Ehsaas Rashan?

According to the programme design, Ehsaas Rashan will cover 20 million households across Pakistan with a poverty score of less than 39 and an income of Rs. 31,500 per month.

In the interest of transparency, the registered Kiryana stores and beneficiaries will undergo a rigorous verification process to minimize the incidence of fraud.

Under the Federal-Provincial cost-sharing arrangement, the budget of the programme for the next six months is Rs 120 billion in the current fiscal year.

The federal government and all participating federating units will share fiscal resources in the ratio of 35/65.

The governments of Punjab, Khyber Pakhtunkhwa, Gilgit Baltistan and AJK have already agreed to participate in the programme.

‘Kamyab Pakistan Programme’

The prime minister also announced Rs 1400 billion for Kamyab Pakistan Program aimed at providing interest-free business loans to the entitled 4 million families.

The package consists of interest-free loans for house construction, Rs 0.5 million each loan for farmers and businesses besides skill training to a member of the entitled family.

He said under Kamyab Jawan Program had so far given Rs 30 billion loan to 22,000 businesses. The program also featured a program to provide six million scholarships and stipends to the students.

Concluding his speech, the prime minister took a jibe at two opposition leaders saying, “I request the two big families to bring half of the money they looted and took outside [to Pakistan]. Even if they bring half [the money], I promise you and the nation that I will slash the prices of all food items by half.”