Pakistan PM orders delivery of Ramadan relief package 2025 sans public utility stores

Pakistan Prime Minister Shehbaz Sharif chairs a meeting in Islamabad on January 30, 2025. (PID/File)
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Updated 04 February 2025
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Pakistan PM orders delivery of Ramadan relief package 2025 sans public utility stores

  • Sharif instructs food ministry not to use services of utility stories due to complaints of corruption last year
  • Ramadan relief package includes price reductions on essential commodities such as wheat, sugar, oil and pulses

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif on Tuesday directed the ministry of national food security to begin preparations to deliver a Ramadan relief package of subsidized food items to low-income groups without using state-owned utility stories to avoid corruption and customer complaints. 

The annual Ramadan relief package includes subsidies and price reductions on essential commodities such as wheat, sugar, oil, and pulses, among other items, and is usually administered through utility stores. However, each year, consumers complain of long queues, limited stock availability, substandard food items, and difficulties with the process of identification verification needed to receive the discounted package at utility stores. 

Other than in Ramadan also, utility stores have been plagued by reports of corruption and mismanagement for years, with consumers complaining of substandard merchandise being sold and staff accused of vending subsidized products in the open market.

“Ramadan is around the corner and for that I have entrusted the ministry of food security with the responsibility to prepare a Ramadan package without [state-owned] utility stores so that there is no corruption and there is no distribution of spoilt goods,” Sharif said in a televised address to his cabinet. 

“This [distribution of Ramadan goods] cannot continue through utility stores. During last year’s Ramadan, there were countless complaints and now we have found a solution to this that we will introduce a [Ramadan] package minus utility stores.”

Once the food ministry prepares the Ramadan Relief Package 2025, it will be presented to the National Economic Coordination Committee for approval.

Last year, the Sharif-led government announced a “historic” Ramadan package with a subsidy of $26.8 million (Rs7.5 billion) to lower the prices of essential items for over 30,96,00,000 families.

During Ramadan in Pakistan, there is a significant increase in the demand for essential food items at subsidized prices, which overwhelms the capacity of utility stores, causing long lines and potential shortages. 

Ensuring equitable distribution of the package across different regions and demographics can also be difficult in a country of 241 million people, sometimes leading to some areas receiving less benefits than others. To prevent abuse, the government implements strict verification processes like CNIC checks, which also leads to delays and inconvenience for customers. 

The allocated stock of subsidized items at utility stores is also often not sufficient to meet the high demand during Ramadan, leading to disappointment for customers who cannot purchase everything they need. 


Pakistan’s first non-life Shariah-compliant takaful operator says ‘historic’ IPO oversubscribed 21 times

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Pakistan’s first non-life Shariah-compliant takaful operator says ‘historic’ IPO oversubscribed 21 times

  • Pak-Qatar General Takaful Limited offered 30 million shares to investors with ceiling price of Rs14 per share
  • Company says IPO proceeds will be used for investments in software, infrastructure, setting up new branches

ISLAMABAD: Pakistan’s first non-life Shariah-compliant takaful operator announced on Thursday that its initial public offering (IPO) was oversubscribed 21 times at the country’s stock exchange, saying the development reflected strong investor confidence in the Islamic insurance system. 

The Pak-Qatar General Takaful Limited said earlier this month it would issue 30 million shares with a floor price of Rs 10 and a ceiling price of Rs 14 per share. Institutional investors will receive 75 percent of the shares on offer, while the remaining 25 percent will be allocated to retail investors, it added. 

“Pak-Qatar General Takaful Limited’s (PQGTL) IPO book-building has concluded with a historic oversubscription of [21x] times, marking the first-ever IPO of a dedicated General Takaful company at PSX,” the company said in a statement. 

It said investors responded “strongly” as the strike price closed at Rs 14 per share, compared to the floor price of Rs 10. Total demand reached Rs 4.74 billion [$17 million].

The company said successful bidders will be provisionally allotted 22.5 million shares while the remaining 7.5 million shares will be offered to retail investors on Jan. 28-29. 

Shahid Ali Habib, CEO of Arif Habib Ltd., which was the lead manager for the IPO, said that country’s first-ever IPO of any dedicated general takaful company, has made a historic debut at PSX.

Habib said this reflects investor confidence in Pakistan’s fast-growing takaful sector and PQGTL’s strong market position.

The statement further said proceeds from the IPO will be utilized to fund strategic initiatives, such as investments in software and other intangible assets, hardware and infrastructure, marketing and brand development and human resource enhancement. 

Proceeds will also be used to establish new branches and transform existing ones to improve operational efficiency and customer experience, it added. 

Pak-Qatar General Takaful Limited is part of Pakistan’s pioneer Islamic financial services group and is backed by Qatar-based financial institutions.