ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet, in its meeting on Thursday, approved the continuation of general subsidies on five essential items provided to consumers through the Utility Stores Corporation (USC).
Dr. Abdul Hafeez Shaikh, Federal Minister for Finance and Revenue, chaired the ECC meeting, where significant decisions were made to provide relief to the public amid ongoing economic challenges.
The Ministry of Industries and Production presented three critical proposals concerning the Utility Stores Corporation (USC) for the ECC’s consideration. The ECC reviewed these proposals and approved the continuation of general subsidies on five key commodities, ensuring affordability for the masses from January 1 to June 30, 2021. This initiative is part of the funds allocated under the Prime Minister’s Relief Package-2020 to mitigate the economic impact of the COVID-19 pandemic.
In a second proposal, the Ministry sought ECC’s approval to reallocate PKR 2.33 billion for the procurement of an Enterprise Resource Planning (ERP) system and IT infrastructure. This automation effort aims to modernize stock management across USC’s extensive network. The ECC approved this proposal in principle, directing further consultations with the Ministry of Information Technology and the Ministry of Finance to ensure seamless implementation.
Additionally, the ECC emphasized the need for a more structured approach to subsidies. It instructed the Utility Stores Corporation to present a revised proposal, incorporating a specific percentage range of price differentials from market rates for essential items. These benchmarks will guide future subsidy allocation, accounting for fluctuations in global commodity prices.
The ECC reiterated its commitment to protecting consumers from the adverse effects of international market volatility. By leveraging subsidies through the USC, the ECC aims to maintain stable prices for essential goods, ensuring relief for economically vulnerable populations.
The ECC’s decisions underscore its proactive role in addressing economic challenges and fostering transparency and efficiency in government-led initiatives, particularly those aimed at supporting the public through subsidized essential commodities.