ISLAMABAD: Pakistan’s Economic Coordination Committee (ECC) on Thursday approved the immediate release of Rs19 billion [$67.9 million] for the Prime Minister’s Ramadan Relief Package, the Finance Division said, with the rest of the funds to be released keeping in mind available fiscal space.
Prime Minister Shehbaz Sharif last week launched a Rs39 billion ($139 million) Ramadan relief package, pledging direct digital cash transfers of Rs13,000 ($47) each to 12.1 million low-income families across Pakistan.
Pakistan’s government launches Ramadan relief packages every year before the holy month begins to lessen the burden of inflation on low-income families.
Finance Minister Muhammad Aurangzeb chaired the CEC meeting on Thursday, in which participants considered a summary from the Ministry of Poverty Alleviation seeking the approval of Rs25 billion [$89.3 million]
“The Finance Division informed the Committee that Rs19 billion had already been budgeted for the Ramzan package for the current financial year and that the remaining requirement would be released as and when necessary,” the statement said.
“The ECC accordingly approved the immediate release of Rs19 billion to enable prompt commencement of disbursement, while agreeing that any additional funds would be considered in line with evolving requirements and available fiscal space,” it added.
The Finance Division noted that the overall size of the package is Rs39 billion [$139 million] out of which Rs10 billion [$35.7 million] are already available with the Benazir Income Support Program (BISP), Pakistan’s largest social safety net that provides unconditional cash transfers to the poor.
The Finance Division said Rs29 billion have been arranged through three components considered by the ECC today, including the Technical Supplementary Grant, operational expenditures and the regularization of re-appropriated funds.
“This financing structure ensures that the package is fully resourced while maintaining fiscal discipline and transparency in implementation,” it added.
The ECC reaffirmed the government’s commitment to extending “timely and dignified” support to deserving segments of society during Ramadan, while upholding fiscal responsibility and robust oversight in the implementation of relief measures.
“It emphasized the need to balance expeditious disbursement of relief with fiscal prudence and transparency in operational expenditures,” it added.
The government will distribute the relief package through bank accounts and regulated mobile wallet platforms, fully replacing the previous utility store-based subsidy model with a digital payment mechanism overseen by the State Bank of Pakistan.
The allocation marks a sharp increase from last year’s Rs 20 billion ($72 million) Ramadan program, as the government expands coverage and deepens its shift toward cash-based targeted subsidies.
