Rs4 billion diverted from BISP to utility stores

Finance Division will provide another Rs2b for subsidy on essential commodities


Zafar Bhutta November 28, 2019
PHOTO: EXPRESS

ISLAMABAD: The government has diverted Rs4 billion, allocated for beneficiaries of the Benazir Income Support Programme (BISP), to Utility Stores Corporation (USC) in an attempt to provide subsidy on the essential commodities being sold at USC outlets.

Earlier, Prime Minister Imran Khan had approved the allocation of Rs6 billion on account of subsidy for USC customers. It was decided that the BISP would place Rs4 billion at the disposal of USC whereas the finance ministry would provide the remaining Rs2 billion.

In a meeting attended by the Ministry of Industries additional secretary, USC board chairman and managing director, the prime minister was apprised of the financial hardship being faced by utility stores in providing essential commodities like flour, sugar, ghee, oil, pulses and rice at fair prices to the underprivileged class of society.

BISP to provide massive assistance to the needy

The premier approved a grant of Rs6 billion in an effort to revive the USC business and stabilise prices of essential commodities. It was agreed that the BISP would provide Rs4 billion from its own resources whereas the Finance Division would make arrangements for the release of remaining Rs2 billion.

The Ministry of Industries and Production told the Economic Coordination Committee (ECC) in a recent meeting that USC had been established in 1971 with the basic objective of providing essential consumer items to the public at prices lower than those prevailing in the retail market.

It requested the ECC to approve a technical supplementary grant of Rs6 billion - Rs4 billion from the BISP and Rs2 billion from the Finance Division - in favour of the Ministry of Industries for onward provision to the USC.

During discussions, the ECC noted that the relief package announced by the prime minister was exclusively meant for the poor segments of society. However, USC had no mechanism to identify such consumers and it was suggested that a committee may be constituted to evolve a viable and transparent mechanism for the purpose.

ADB approves $200m loan for BISP

The ECC considered a summary of the provision of technical supplementary grant of Rs6 billion for subsidy and procurement of commodities. It constituted a committee, headed by the adviser to the prime minister on commerce, textile, industry and production.

The committee would comprise the minister of railways, minister of privatisation, State Bank of Pakistan governor, BISP chairperson, Finance Division secretary, Industries and Production Division secretary and USC managing director.

The committee was given the mandate to establish a mechanism for the availability of essential commodities such as sugar, ghee, oil, pulses and rice at fair prices to the poor segments of society through utility stores across the country. 

Published in The Express Tribune, November 28th, 2019.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ