The honourable Prime Minister announced a PkR120 billion relief package under the flagship “Ehsaas Program,” which would be implemented by NBP, in order to curb food inflation and provide relief to the populace.
The aforementioned subsidy is in addition to the PkR260 billion previously planned and would be targeted to certain country areas. The subsidy scheme is anticipated to assist 20 million families.
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 the equity market, the package was essentially a non-event, with the focus shifting to the following MPS, where the market anticipates at least a 50bps hike in interest rates.