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- Previously, annual Ramadan package used to be administered by utility stories that sold essential food items at reduced rates
- Under new system, government has deposited Rs5,000 in digital wallets for four million families to make withdrawals from
ISLAMABAD: Prime Minister Shehbaz Sharif on Monday directed relevant ministries, the central bank, and private partners to improve awareness of using digital wallets so that poor families could fully utilize a Rs20 billion ($71.4 million) Ramadan relief package.
Announcing the package at the start of this month, the government said it would credit Rs5,000 ($17.87) into digital wallets for around 4 million families across the country to support them in the holy month of Ramadan.
During a visit on Monday to the National Telecommunication Corporation Headquarters to monitor the execution of the Ramadan program, Sharif was informed that around 2.8 million entitled accounts had been credited with Rs5,000 each but money had only been withdrawn from 683,000 accounts.
“As 94 percent of accounts have been established, the withdrawal ratio is just 22 percent,” the PM was quoted as saying by state-run APP news agency.
“There is a big gap between disbursement and withdrawal, which shows a lack of awareness among the people,” the PM added, calling on the governor central bank to join the campaign to ensure that maximum people benefitted from the program.
In the past, the annual Ramadan relief package would be implemented through state-run utility stores, from where low-income households could buy essential commodities such as wheat, sugar, oil, and pulses, among other items, at reduced prices. However, each year, consumers complain of long queues at the stores, limited stock availability, substandard food items, and difficulties with the process of identification verification needed to receive the discounted package at utility stores, which led the government to announce it would no longer utilize utility stores to administer its Ramadan program.
Other than in Ramadan also, utility stores have been plagued by reports of corruption and mismanagement for years, with consumers complaining of substandard merchandise being sold and staff accused of vending subsidized products in the open market.
During Ramadan in Pakistan, there is a significant increase in the demand for essential food items at subsidized prices, which overwhelms the capacity of utility stores, causing long lines and potential shortages.
Ensuring equitable distribution of the package across different regions and demographics can also be difficult in a country of 241 million people, sometimes leading to some areas receiving less benefits than others. To prevent abuse, the government implements strict verification processes like CNIC checks, which also leads to delays and inconvenience for customers.
The allocated stock of subsidized items at utility stores is also often not sufficient to meet the high demand during Ramadan, leading to disappointment for customers who cannot purchase everything they need.
“This [digital wallets] was a new concept to say goodbye to the utility stores forever due to the massive complaints of worst corruption of public money, which was also an injustice to the common man,” Sharif said. “The issue of poor quality and corruption have been done away with through a new modern digital wallet.”
The PM also urged people to call the program helpline at 9999 to get their financial support without any delay.