ISLAMABAD, Aug 30: The government on Saturday announced five to 10 per cent reduction in prices of 1,300 food and non-food items to be sold at the Utility Stores Corporation’s outlets in Ramazan.

All utility stores will also remain open on holidays with an extended duration. Finance Minister Naveed Qamar, who announced the Rs1.7 billion subsidy package effective from Sept 1, told a press conference that petroleum prices would remain unchanged in Ramazan despite a steep fall in the international market.

He said that the government was still providing a subsidy of Rs14 per litre on diesel.

Mr Qamar said that the electricity tariff would be raised by 31 per cent, but its notification would be issued after the presidential election.

He said flour, ghee, edible oils, rice, pulses, dates, pickles, ketchup, milk, spices and various other items would be available at 4,700 utility stores across the country.

Statistics posted on the USC website showed that 2,655 stores are situated in Punjab alone, 773 in Sindh, 862 in the NWFP and 240 in Balochistan. Only over 160 million will get relief as the stores does not exist in every union council.

Under the package flour will be sold at Rs15 per kg, oil and ghee (utility brand) at Rs110, sugar at Rs30.50, Daal Chana at Rs47, gram at Rs63, besan at Rs59 and tea will be available at Rs376 per kg.

Super Basmati rice will be sold at Rs88, Sela Karnal Basmati at Rs97, Phool Basmati at Rs106 and USC dates at Rs86 per kg.

Mr Qamar said that special monitoring arrangements would be made to ensure proper supply and distribution to the end consumers. He said the target of the package was the poor and low-income people.

In reply to a question, the finance minister said the ministry of food agriculture and livestock had been directed to maintain quality of flour, adding that the government was trying its best to ensure proper quality of products.

He said that the ghee mills had been asked to reduce prices of edible oil and ghee in accordance with the international market.

The finance minister said that the Saudi government would soon announce the support package for Pakistan. He said that the subsidy on petroleum products would be removed by the end of the year. He linked the reduction in local prices of oil with complete elimination of subsidies.

USC Managing Director Brig (retd) Hafeez Ahmed said that 200 more outlets would be set up very soon. He said that the corporation had sufficient stocks and there would be no shortage of commodities at its outlets during the holy month, adding that mobile utility stores would be launched in the areas where there were no proper stores.