Govt plans subsidy package, other populist measures
By Khaleeq Kiani
ISLAMABAD, June 5: With coming elections in mind, the government plans to announce a number of populist measures in the next year budget through subsidies in the form of expansion of utility stores and facilities for working class, official sources told Dawn on Tuesday.
A new concept of sale of medicines through the Utility Stores Corporation (USC) will be introduced, besides higher subsidies on essential commodities like sugar, rice and pulses.
The sources said the overall subsidies in the next year budget, to be presented before the National Assembly on June 9, would almost be doubled from Rs109 billion this year to around Rs200 billion.
The coverage of the USC will be expanded both in terms of branches and products. About 500 new utility outlets will be opened throughout the county where essential medicines will also be available.
A subsidy of Rs9 per kg will be provided on Dal Channa prices to keep that at about Rs29 per kg. Dal Moong will be sold at Rs47 per kg through USC outlets against Rs56 per kg rates in the open market. Likewise, Dal Mash will be made available at Rs57 per kg against Rs72 per kg in the open market, lower by about Rs15 per kg.
Sugar prices will be reduced by another Rs1 per kg at USC outlets and tea will be sold at Rs10 per kg lower than the open market. An announcement will also be made as part of the budget to set up multiple fruit and vegetable markets in major cities.
Minimum wages for workers will be enhanced by Rs500 to 4,500 per month from current rates of Rs4,000 per month. Likewise, pensions paid under the Employees Old-age Benefit Scheme will be enhanced from Rs1,300 per month to Rs1,500 per month.
The one-time support for affected workers under the Workers Welfare Fund will be enhanced from Rs200,000 to Rs300,000.
