Salient points of food package in the eye of the research house.

• In a bid to contain food inflation and to give relief to the masses, the honourable Prime Minister announced a relief package of PkR120bn under the flagship “Ehsaas Program”, with execution being handled by NBP.
• The said subsidy is above the already budgeted amount of PkR260bn and would target specific country segments. 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 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.

Courtesy – AKD Research