ISLAMABAD: Pakistan will provide financial assistance to low-income households through digital wallets during the fasting month of Ramadan, Prime Minister Shehbaz Sharif said on Thursday, announcing a government relief initiative aimed at helping families afford daily meals.

The support program comes as many Pakistanis continue to face elevated food and utility costs despite easing inflation, with Ramadan traditionally increasing household spending on staple foods, fruits and energy consumption.

For decades, government-run Utility Stores Corporation outlets were central to Ramadan relief in Pakistan, selling subsidized flour, sugar, ghee and pulses through special “Ramzan packages” that drew long queues in low-income neighborhoods. In recent years, however, authorities have steadily scaled back the system amid mounting losses, corruption complaints and logistical inefficiencies, shifting instead toward targeted cash transfers delivered through digital wallets and banking channels. 

The change reflects a broader policy move away from state-managed commodity distribution toward direct financial assistance intended to give households flexibility while reducing leakages in subsidy programs.

“The Government of Pakistan has launched a Ramadan package under which financial assistance will be transferred to deserving individuals through digital wallets so that households can maintain sehri and iftar meals,” Sharif said in a message issued by his office.

The prime minister said Ramadan encourages compassion and collective responsibility toward vulnerable segments of society, adding that welfare support was part of the state’s duty during the holy month.

Officials say the digital cash transfers approach improves transparency and reduces corruption risks while enabling faster payments nationwide, particularly in urban low-income communities.

But the shift to fully digital assistance also brings challenges. 

Access to smartphones and reliable mobile Internet remains uneven, particularly in rural areas and among older recipients, while many low-income households use SIM cards registered to someone else, complicating verification.