PM announced a package to contain food inflation

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

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