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ISLAMABAD: Pakistan’s top economic decision-making body gave the green light to the Ramadan relief package on Tuesday, paving the way for assistance to lower- and middle-income groups as the Muslim fasting month approaches in March, amidst soaring inflation.
Annually, the Pakistani government unveils this package to alleviate the financial strain brought about by increased food consumption and charitable giving during Ramadan, a significant Islamic month.
The relief package encompasses subsidies and price reductions on vital commodities like wheat, sugar, oil, and pulses, aiming to ease the financial burden on households.
According to reports from Radio Pakistan, the Economic Coordination Committee endorsed the proposed Ramadan Relief Package 2024, earmarking 7.4928 billion rupees (approximately $32.6 million) in subsidies for targeted beneficiaries under the Benazir Income Support Program (BISP).
Pakistan experienced a record-high inflation rate of 38 percent in May, which has gradually subsided to 28.3 percent at the beginning of this year. However, short-term inflation, as measured by the Sensitive Price Index, surged by 39.45 percent on an annual basis earlier this month, driven by increased energy and food prices.
Independent financial analysts and global institutions, including the International Monetary Fund (IMF), anticipate a gradual easing of inflation in Pakistan in the forthcoming months, potentially providing much-needed relief to the populace.
