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)
Short Url
Updated 04 February 2025
Follow

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. 


IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

Updated 6 sec ago
Follow

IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

  • Fund backs sale of national airline as key step in divesting loss-making state firms
  • IMF has long urged Islamabad to reduce fiscal burden posed by state-owned entities

KARACHI: The International Monetary Fund (IMF) on Saturday welcomed Pakistan’s privatization efforts, describing the sale of the country’s national airline to a private consortium last month as a milestone that could help advance the divestment of loss-making state-owned enterprises (SOEs).

The comments follow the government’s sale of a 75 percent stake in Pakistan International Airlines (PIA) to a consortium led by the Arif Habib Group for Rs 135 billion ($486 million) after several rounds of bidding in a competitive process, marking Islamabad’s second attempt to privatize the carrier after a failed effort a year earlier.

Between the two privatization attempts, PIA resumed flight operations to several international destinations after aviation authorities in the European Union and Britain lifted restrictions nearly five years after the airline was grounded following a deadly Airbus A320 crash in Karachi in 2020 that killed 97 people.

“We welcome the authorities’ privatization efforts and the completion of the PIA privatization process, which was a commitment under the EFF,” Mahir Binici, the IMF’s resident representative in Pakistan, said in response to an Arab News query, referring to the $7 billion Extended Fund Facility.

“This privatization represents a milestone within the authorities’ reform agenda, aimed at decreasing governmental involvement in commercial sectors and attracting investments to promote economic growth in Pakistan,” he added.

The IMF has long urged Islamabad to reduce the fiscal burden posed by loss-making state firms, which have weighed public finances for years and required repeated government bailouts. Beyond PIA, the government has signaled plans to restructure or sell stakes in additional SOEs as part of broader reforms under the IMF program.

Privatization also remains politically sensitive in Pakistan, with critics warning of job losses and concerns over national assets, while supporters argue private sector management could improve efficiency and service delivery in chronically underperforming entities.

Pakistan’s Cabinet Committee on State-Owned Enterprises said on Friday that SOEs recorded a net loss of Rs 122.9 billion ($442 million) in the 2024–25 fiscal year, compared with a net loss of Rs 30.6 billion ($110 million) in the previous year.