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Pakistan & Gulf Economist
Home»Economy»Government Initiative
Economy

Government Initiative

By S. Kamal Hayder KazmiMarch 14, 2022Updated:March 15, 2022No Comments4 Mins Read
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PM Imran introduces Ehsaas Rashan Riayat initiative

According to UNDP Human Development Report 2020, Pakistan’s HDI value for 2019 stayed at 0.557 which put the country in the ‘Medium’ category.

Pakistan ranked at 154 out of 189 countries in the index based on Health (life expectancy at birth), Education (Expected years of schooling) and Gross National Income (GNI) per capita. Between 1990-2019, Pakistan’s HDI value grew from 0.402 to 0.557, a rise of 38.6 percent which is considerably less than the increase attained by Bangladesh (59 percent) and India (52 percent). Pakistan’s life expectancy at birth grew by 7.2 years, mean years of schooling grew by 2.9 years and expected years of schooling grew by 3.7 years respectively. Pakistan’s GNI per capita increased by 64.1 percent. From South Asia, statistics showed that Pakistan is compared with Bangladesh, Afghanistan and India which have HDIs ranks of 133, 169 and 131 respectively. On the other hand, expenditure on pro-poor sectors reached at 9.5 percent of GDP in 2016-17 followed by 9.2 percent of GDP in 2017-18. It dropped to 8.1 percent of GDP in 2018-19 and slightly grew to 8.3 percent of GDP in 2019-20. In absolute terms, pro-poor expenditure grew to Rs 3,447.35 billion as against to Rs 3,009.30 billion in 2018-19. Presently Prime Minister Imran Khan introduced Ehsaas Riayat Rashan Programme under which 20 million eligible families will be offered subsidies on daily use items. Addressing the launching ceremony in Islamabad, Imran Khan said that a 30 percent monthly subsidy will be offered to 20 million families on daily use items under ruling PTI’s “revolutionary” Ehsaas Riayat Rashan Programme. Statistics showed that eligible families will get a subsidy of Rs 1,000 per month on the purchase of flour, pulses, ghee/cooking oil, adding that the federal government had offered subsidy to needy people in order to control inflation in Pakistan. Imran went on to say that Pakistan is still the cheapest country in the region amid worldwide inflation because of the Covid-19 pandemic. The World Bank (WB) has ranked Pakistan’s Ehsaas Emergency Cash programme among the top four global social protection initiatives, the prime minister said and added that all citizens apart from Sindh province will get Sehat Cards by the end of this month. While addressing the ceremony, special assistant on poverty alleviation sania nishtar said the first phase of registration for Ehsaas Riayat Rashan Program had been completed and messages are being sent to 9.2 million deserving families. Sania Nishatr further previously informed that Ehsaas Rashan Programme will cover 20 million households across the country with a poverty score of less than 39 and an income of Rs 31,000 per month. Imran proclaimed Rs120 billion relief package to offer essential commodities to 130 million people at subsidized rates. Under the package, he said, 30 percent subsidy would be given on ghee, flour, and pulses for the next 6-month. Ehsaas has developed a digitally enabled mobile point of sale system in collaboration with the National Bank of Pakistan (NBP) to serve beneficiaries through a network of Kiryana stores designated by NBP, all over the country. Ehsaas and the National Bank of Pakistan have developed a technology-led, targeted subsidy disbursal program. For online registration of beneficiaries, Ehsaas will open a registration portal upcoming week. In the interest of transparency, the registered Kiryana stores and beneficiaries will undergo a rigorous verification process to minimize the incidence of fraud. Under the Federal-Provincial cost-sharing arrangement, the budget of the programme for the next six months is Rs 120 billion in the current fiscal year.

The federal government and all participating federating units will share fiscal resources in the ratio of 35/65. The governments of Punjab, Khyber Pakhtunkhwa, Gilgit Baltistan and AJK have already agreed to participate in the programme. Imran Khan also announced Rs 1400 billion for Kamyab Pakistan Program aimed at offering interest-free business loans to the entitled 4 million families. The package consists of interest-free loans for house construction, Rs 0.5 million each loan for farmers and businesses besides skill training to a member of the entitled family. Imran Khan said under Kamyab Jawan Program had so far given Rs 30 billion loan to 22,000 businesses. The program also featured a program to provide 6.0 million scholarships and stipends to the students.

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S. Kamal Hayder Kazmi

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