ISLAMABAD: In view of the recent price hike, Prime Minister Imran Khan has announced the Ehsaas Rashan Program of Rs 120 billion, “historic” subsidy package for as many as 20 million families, to provide relief to the poor.
In his televised speech to nation on Wednesday, the prime minister said that as many as 20 million families identified through the recently completed Ehsaas survey, will benefit from the programme.
He said that the masses are undergoing a tough time due to the inflation in the country, the government is introducing a package for 20 million families, which will, in turn, benefit 130 million Pakistanis.
130 million people will benefit nationwide which is 53% of the population, will be benefittd by this poverty alleviation]\ package, which is worth Rs120 billion, will be offered to Pakistanis by the federal and provincial governments, he said.
Yesterday, the Federal Cabinet gave approval to launch the Ehsaas Rashan Program across Pakistan.
The premier announced that under Ehsaas Rashan people will be provided a subsidy of Rs 1,000 a month to each of the 20 million families on the purchase of flour, pulses, Ghee/Cooking oil.
Ehsaas has developed a digitally enabled mobile point of sale system in collaboration with National Bank of Pakistan (NBP) to serve beneficiaries through a network of Kiryana stores designated by NBP, all over the country, he added.
He was of the view that Ehsaas and the NBP have developed a technology-led, targeted subsidy disbursal program. This system will digitize parts of the retail sector; there will be use of real time data for decision making. The use of a digital platform in this program will help track utilization of subsidy by each beneficiary at product and geographical level which will provide much needed transparency in the process, he maintained.
This process will help make beneficiaries and storeowners more digitally adept, he said, adding that the participating Kiryana store owners will be required to open bank accounts which will help further increase financial inclusion and settlement payments made through RAAST will help increase scale of digital transactions in Pakistan.
He also announced that for online registration of beneficiaries, Ehsaas will open a registration portal next week. According to the program design, Ehsaas Rashan will cover 20 million households across Pakistan with a poverty score of less than 39 and an income of Rs. 31,500 per month.
In interest of transparency, the registered Kiryana stores and beneficiaries will undergo a rigorous verification process to minimize the incidence of fraud, he added.
He went on to say that governments of Punjab, Khyber Pakhtunkhwa, Gilgit Baltistan and AJK have already agreed to participate in the program. In other federating units, federal share of subsidy worth Rs. 350 per month will be given for each eligible household, he added.
At the beginning of his address, the premier thanked China and Saudi Arabia for financially assisting Pakistan and said that had the country become a defaulter, the rupee would have depreciated more and inflation would have skyrocketed.
Talking on coronavirus pandemic across the world saying that, unlike other countries, the Pakistani government made strategic decisions related to the imposition of a lockdown and saved factories from closing down and agricultural activities were running as usual.
“Due to the government’s policies, cotton production had increased by 81%, while record-breaking motorcycle and tractor sales were witnessed in the country”, the premier said.
Urea was used 23% more by the farmers, indicating that the conditions were getting better. And when the farmers are happy, the production increases, and in return, it benefits the country, he added.
In construction, there are Rs600 billion projects underway, as we had incentivised it, he said, adding that in the industrial sector, the large scale manufacturing had increased by 13% — more money and more jobs in the country, he said, adding, “We had [allowed] construction industry to operate; we tried to save our exports as if they would have stopped, then the dollar would have gone up against the rupee”.
Due to the government’s policies, rice production had gone up by 13.6%, corn 8%, sugarcane 22%, and wheat 8%.
Talking about the increase in profits of several industrial sectors, he said engineering witnessed an increase of 350% in their profits, textile 163%, cars 131%, cement 113%, oil and gas 75%.
The premier said electricity consumption had increased by 13%, indicating that the industry was growing. The prime minister stated that the tax revenue was increasing, which showed that our economic indicators are on the right track.
In information and technology, the prime minister said the sector had witnessed a growth of 47%, while in the current year, it is expected to grow by 75%. “This is a good thing for our youth”.
“Our policies prevented the economy from collapsing,” he said. “The World Bank, the World Health Organisation, and the World Economic Forum, all praised our policies amid the pandemic.”
Speaking about the ongoing inflation in the country, he told the media outlets that while it is their right to criticise the government, they should opt for a balanced approach when reporting on inflation.
Citing the example of Turkey, Germany, China, and the United States, the premier said that after 2008, these countries had also faced historic inflation.
“What can we do if inflation is being driven because of global factors?” the premier questioned as he cited the examples of oil and gas prices worldwide.
“Yes, we are facing inflation in the country but you should also look at what the government is doing to alleviate the situation,” he said, adding that due to factors which is not in the hands of the government, petrol prices will have to be increased further.
“If we do not increase the price of petrol, the deficit will increase, the PM said, adding that global oil prices have risen to 100%, while the price of petrol in India is Rs250 per litre.
“Oil and ghee prices have doubled worldwide, and since we import these items, what can we do about the prices?” he said.
Earlier in the day, Federal Information Minister Fawad Chaudhry had said in a statement that PM Imran Khan’s first priority is to alleviate the sufferings of the people and he will go to any lengths to provide them relief.
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