ISLAMABAD: The government approved on Thursday Rs1.5 billion Ramazan Relief Package to provide essential commodities to consumers at reasonable rates in the holy month through the Utility Stores Corporation (USC).

The decision was taken at a meeting of the Economic Coordination Committee (ECC) of the cabinet presided over by Finance Minister Ishaq Dar.

The ministry of industries and production had proposed allocation of Rs1.7bn for the package but the minister suggested that Rs1.5bn be approved instead. Last year Rs1.4bn was spent for the purpose.

The meeting also directed the USC to spend Rs10 million on publicity of the package from its own resources.

Mr Dar claimed that the government was extending the package as a special measure because prices had already declined in the market because of low inflation. The step was, therefore, meant to further facilitate the public during the holy month.

The finance division will provide an upfront payment of Rs1bn to the USC to buy the items before Ramazan. A total of 18 items will be sold at subsidised rates at the USC outlets.

The items include wheat flour, sugar, ghee/oil, pulses (daal channa, daal moong washed, daal maash washed, daal masoor, white gram), baisen, dates, basmati rice, sela rice, broken rice, squashes and syrups (900ml bottles), black tea, milk (Tetra pack) and spices.

The meeting instructed the industries ministry and the USC to submit a report to the ECC by the middle of Ramazan about the implementation of the package which would be launched on June 15.

The ECC also approved a proposal of the ministry of information technology to make operational the already opened, non-lapsable Personal Ledger Accounts (PLAs) of Universal Support Fund and Research and Development funds subject to amendments in R&D and USF rules.

This has been allowed to help telecom operators utilise funds for execution of projects, especially those relating to rural and underserved areas.

The meeting also approved $35.96m for induction of 15 aircraft on dry lease into the fleet of the Pakistan International Airlines (PIA).

In its meeting held on December 6, the ECC had approved in principle $52m and provision of first tranche of $16.4m for the aircraft. The PIA had arranged to obtain 10 A-320 and 5-ATR-72 aircraft on dry lease, the ECC was informed.

The ECC also accorded ex-post facto approval of separation of two major entities in the power sector, required under the IMF programme.

The power secretary told the meeting that following the 1992 Power Sector Reform plan approved by the Council of Common Interests (CCI), the function of transmission and distribution of electricity fell under the purview of the National Transmission and Despatch Company (NTDC).

The system operations were being run by the NTDC through its various divisions. The reform plan also envisioned the creation of a competitive and wholesale ‘electricity market’ that would benefit the sector and the country’s economy through newly introduced profit incentives and enhancement in managerial autonomy as well as accountability.

Therefore, the meeting approved the separation of the NTDC from the Central Power Purchase Agency-Guarantee, tasked with creating an ‘electricity market’.

Published in Dawn, May 1st, 2015

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