Karachi, November 04, 2021 (PPI-OT): Pakistan Economy: Package announced to contain food inflation

In a bid to contain food inflation and to give relief to masses, honourable Prime Minister announced a relief package of PkR120bn under the flagship “Ehsaas Program” with execution being handled by NBP.

The said subsidy is over and above the already budgeted amount of PkR260bn and would be targeting certain segments of the country. 20mn families are expected to benefit from the subsidy program.

The Prime Minister also announced “Kamyab Pakistan Program”, another flagship project of the PTI Govt., under which PkR1.4trn interest free loans would be disbursed.

With oil prices continuing to stay strong in the international market, we may see the government likely passing on the impact within the next fortnight.

From the vantage of equity market, the package was largely a non-event with focus shifting to the next MPS where the market anticipates at least a 50bps hike in interest rates.