Key Points
- Cabinet’s economic committee approves release of Rs 19 billion
- Total allocation for the package is set at Rs 25 billion
- Rs 1 billion cleared in principle for operational costs
- Funds to be distributed through banking and digital channels
ISLAMABAD: Pakistan’s top economic decision-making body has approved the immediate release of Rs 19 billion ($68 million approx.) for the Prime Minister’s Ramadan Relief Package 2026, aimed at providing financial assistance to low-income families during the Muslim holy month of Ramadan.
The decision was taken at a meeting of the Economic Coordination Committee of the federal cabinet, chaired remotely by Finance Minister Senator Muhammad Aurangzeb. The committee reviews major financial proposals before they are placed before the full cabinet.
According to an official statement issued by the Finance Division, the Ministry of Poverty Alleviation and Social Safety had sought approval for a total of Rs 25 billion for the Ramadan support programme. Of this amount, Rs 19 billion had already been allocated in the current fiscal year’s budget, and the committee authorised its immediate release to begin disbursements without delay.
The remaining funds will be released if required, depending on fiscal space and programme needs.
The committee also granted in-principle approval of Rs 1 billion for operational expenses linked to the package, including payments to partner financial institutions and outreach activities. It directed the relevant ministry to submit a detailed cost breakdown to ensure transparency and compliance with public finance rules.
Officials said some preliminary steps had already been taken to expedite payments using re-appropriated funds, and the committee regularised those actions to avoid administrative delays.
Pakistan faces ongoing fiscal challenges, including a significant budget deficit and strict external financing conditions, making targeted social protection programmes a delicate aspect of economic management. Authorities stressed that any unspent funds under the relief package would be returned to the national treasury in accordance with established procedures.
The Prime Minister’s Ramadan Relief Package is designed to provide one-time cash assistance to vulnerable households during Ramadan, a month when food consumption and household expenses typically rise. Beneficiary selection will be based on data from the National Socio-Economic Registry, a government database used to identify low-income families eligible for social protection schemes.
Funds will be transferred directly to beneficiaries through formal banking and digital payment channels to minimise leakages and improve transparency. The government states that the use of data-driven targeting and electronic transfers is intended to reduce discretion and strengthen accountability in welfare spending.
