ZAHEER ABBASI

ISLAMABAD: The Ministry of Industries and Production has sought Rs 10 million for an advertisement campaign of a Rs. 1.770 billion Ramazan package for the upcoming month of Ramazan, it was learnt.

Sources told Business Recorder that Ministry of Industries presented a proposal to the Economic Coordination Committee (ECC) of the Cabinet chaired by Finance Minister last Thursday. The Ministry requested the approval of a Ramazan package for the current fiscal year and the releases of balance of subsidy of Rs 1.971 billion for Ramazan package from fiscal year 2011-2013. The ECC was informed that Ramazan relief package would be effective from June 15, 2015, as Ramazan is likely to commence on June, 20, 2015. Ministry of Industries admitted that the demand for essential commodities such as wheat flour, sugar, pulses, gram flour, dates, tea, squashes and syrups, and milk generally increases every year during Ramazan. The private sector invariably increases the prices of these commodities for a variety of reasons. The Utility Stores Corporation (USC) has successfully conducted the Ramazan Relief Packages announced by the Government since 1991.

Sources added that Ministry of Industries maintained that Ramazan packages have not only helped provide relief to consumers but also helped stabilize prices in the open market. They said the ECC meeting in 2011 had decided that the relief package must be presented for approval of the ECC at least four to six months before the start of Ramazan each year and ECC approved last year’s Ramazan Relief Package of Rs 2 billion on 16th May, 2014.

Ministry of Industries has proposed a subsidy for 19 essential commodities from Rs 4 to Rs 10 during Ramazan at USC. The Ministry has requested to the ECC for approval of a Rs 280 million subsidy for flour to provide a relief of Rs 10 on per kg, a Rs 175 million subsidy for sugar to reduce per kg price by Rs 5, Rs 750 million subsidy for Ghee and oil to sell at Rs 10 per kg less at USC than in the open market and a Rs.35 million subsidy for Dall Channa to give a discount of Rs.10 on per kg.

The Ministry has also requested a subsidy of Rs 10 million for Dal Moong, Rs 10 million for Dal Mash washed and Rs 10 million for Dall Masoor to sell the commodity at Rs 10 per kg less at USC during Ramazan. The ECC was requested that a subsidy of Rs 25 million would be required to sell 2500 metric tons white Gram. Rs 30 million would be required to sell 3000 metric tons of basin at a subsidized rate by Rs 10 per kg less; Rs.10 million would be required to give a subsidy of Rs 10 per per kg, Rs.50 million to provide Rs 10 per kg subsidy on rice basmati, Rs 20 million subsidy for rice sela, Rs.40 million for broken rice, a Rs.40 million subsidy for broken rice, 45 million for squash syrups, Rs 150 million for black tea, Rs20 million for milk (tetra pack), Rs100 million for spices.

Ministry of Industries regretted that the Finance Ministry has not released Rs 1.970 billion as releases by the Finance Ministry was significantly less than the approved Ramazan Relief Package. Payment of arrears include Rs 601 million for 2011 as Rs.2.1 billion Ramazan package was approved but Rs 1.5 billion were released followed by 572 million for fiscal year 2012 as a result of Rs. 2 billion releases out of Rs.2.572 billion approved package and Rs 795 million for fiscal year 2013 due to Rs only 1 billion releases out of total Rs 1.795 billion approved package. The payment of subsidy arrears’ claims during previous months of Ramazans was discussed in the ECC meeting held on April 17, 2014 and August 26, 2014 and it was decided that previous subsidy claims of USC may be released by the Finance Division. Ministry of Industries requested for the approval of the Ramazan Relief Package 2015 of Rs. 1.77 billion for provision of subsidy on commodities or approval for payment of up-front subsidy of Rs.1.77 billion to the USC for Ramazan Relief Package 2015.

Ministry of Finance asserted that the budget allocation for Ramazan Relief Package 2015 and previous years’ arrears is under process and a subsidy release mechanism will be as per the past practice. The balance subsidy claim of Rs.1.971 billion would be released subject to verification/audit of claims of Ramazan Relief Package, as per directions of ECC dated 17-04-2014.