ZAHEER ABBASI

ISLAMABAD: The government has decided to make an upfront payment of Rs 1.5 billion to the Utility Stores Corporation (USC) with respect to the purchase of essential commodities for Ramazan.

Sources said that Economic Coordination Committee (ECC) of the Cabinet has given approval for payment of an upfront subsidy. The ECC meeting, presided over by Finance Minister Ishaq Dar, was submitted two options for Ramazan Package: approval of Rs 1.691 billion for provision of subsidy or approval for payment of an upfront subsidy to USC for the Ramazan Relief Package 2015. Ministry of Industries and Production submitted a summary to the ECC for approval of a Ramazan relief package of Rs 1.770 billion.

The ECC constituted a Committee comprising Secretary Industries & Production (Convener), Advisor to Finance Division, Secretary National Food Security, Additional Secretary Commerce, and Managing Director USC to analyze and compare the proposed quantities and prices of commodities included in the Ramazan Relief Package 2015 with last year’s package. The Committee was also directed to re-assess the commodities to be included in the current package.

The Committee met on April 28, 2015 and worked out quantities and the amount of subsidy thereon, keeping in view last year’s sales, current market prices, domestic production and market availability, and recommended inclusion of sugar in the Ramazan Relief Package for a quantity of 80,000 metric tons with a subsidy of Rs 5 per kg subject to successful procurement of sugar by the USC.

Finance Ministry would now be providing Rs 400 million as subsidy on sugar instead of Rs 175 million proposed in the previous summary. The effective date of the Ramazan Relief Package is proposed to be June 15, 2015, as the Holy Month is likely to commence on June 20, 2015. Ministry of Industries has admitted that the prices of essential commodities invariably increase due to demand-supply situation by the profiteers during the holy month of Ramazan.