ISLAMABAD: Pakistan’s government this week directed banks and financial institutions to accelerate disbursement of its Rs38 billion ($136 million) Ramadan cash relief package, ordering full-scale activation of beneficiary accounts to ensure timely payments to 12.1 million low-income families.
The Prime Minister’s Ramadan Relief Package 2026, launched on Feb. 14, provides Rs13,000 ($47) each to eligible households through bank accounts and regulated mobile wallets, replacing the earlier utility-store subsidy model with a digital transfer system overseen by the State Bank of Pakistan.
The latest directive comes as Ramadan spending accelerates, with food purchases typically rising during the holy month, prompting the government to ensure payments reach families before household expenses increase further.
In a meeting on Monday with Partner Financial Institutions and the State Bank of Pakistan, the Federal Minister for Poverty Alleviation and Social Safety, Syed Imran Ahmad Shah, “directed that account creation and activation for beneficiaries be carried out at full scale, with disbursement of funds accelerated over the coming days,” according to a government statement.
He also “stressed the need for immediate mobilization of all remaining beneficiaries to ensure seamless account activation and onward crediting, in line with the Prime Minister’s directives.”
Banks including HBL, JazzCash, Easypaisa, Habib Bank and several microfinance institutions briefed the minister on progress in creating new accounts, activating dormant accounts and enabling disbursement through both cash and digital channels, the statement said.
A representative of the State Bank of Pakistan informed the meeting that ATM awareness flyers were being displayed across participating financial institutions to facilitate beneficiaries.
The minister further directed that funds be transferred promptly for onward release to partner institutions and ordered daily progress updates to ensure “transparency, oversight, and real-time monitoring,” the statement added.
This year’s Ramadan package marks a sharp increase from last year’s Rs20 billion ($72 million) as the government expands coverage and deepens its shift toward cash-based targeted subsidies.
Officials said Rs28 billion ($101 million) has been earmarked for families not currently receiving support under any federal income assistance program, while an additional Rs10 billion ($36 million) will go to those already registered under existing social protection schemes.
The government scrapped the Utility Store-based Ramadan subsidy system last year, arguing that it led to quality concerns, long queues and administrative inefficiencies.
The digital transfer model aims to move toward a targeted subsidy regime aligned with broader efforts to expand financial inclusion and reduce cash-based leakages.
