Sales of commodities: Finance ministry holds off Rs1b subsidy for USC

Govt also refuses to provide Rs10m for utility stores’ media campaign.


Our Correspondent April 23, 2014
Before releasing this amount, the ministry will first take into account actual sales of commodities under the Ramazan relief package for 2013, sources say. PHOTO: FILE

ISLAMABAD: The Ministry of Finance has held back payment of Rs1 billion worth of subsidy to the Utility Stores Corporation (USC) as the latter’s flour sales far exceeded the target set for Ramazan last year.

Before releasing this amount, the ministry will first take into account actual sales of commodities under the Ramazan relief package for 2013, sources say.

In addition to this, the government has refused to dish out Rs10 million to the USC for a media campaign for this year’s Ramazan package.



“Rather, it has told the USC’s top management to bear the cost of media awareness campaign from its own resources,” a source said.

According to sources, in a meeting of the Economic Coordination Committee (ECC) held on April 17, it was pointed out that the USC sold 92,000 tons of flour compared to the target of 15,000 tons for the Ramazan relief package 2013.

Meeting participants said the Finance Division had not paid the balance of Rs1 billion in subsidy, however, it would pay the amount after taking into account actual sales of commodities in Ramazan last year.

The ECC was of the view that the USC should print in Urdu on packaging of commodities to be sold in Ramazan this year that this was under the “Wafaqi Hukumat Ka (federal government’s) Ramazan Relief Package 2014” along with the sale price.

Furthermore, the USC should itself pay the cost of media awareness campaign worth Rs10 million.

The committee agreed that the government would release a subsidy of Rs2 billion under the Ramazan package this year and asked the Ministry of Industries and Production to revise the proposal about the volume of commodities on which subsidy would be provided.

However, details of the relief on essential commodities would be submitted by the USC in the next ECC meeting.

Published in The Express Tribune, April 24th, 2014.

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