Ehsaas Rashan unlikely to benefit targeted sections, PIDE study finds.

KARACHI -- The food subsidy under the proposed Ehsaas Rashan Programme (ERP) is unlikely to reach the targeted sections of the population because of accessibility and connectivity problems.

A recent research report issued by the Pakistan Institute of Development Economics (PIDE) showed the intended beneficiaries of ERP - 20 million households - will not be able to receive the promised Rs1,000 per month on the purchase of flour, pulses, ghee or cooking oil.

Using the consumption patterns of the three food items reflected in the Household Integrated Economic Survey, the study concluded that the actual average monthly subsidy requirement is of Rs2,048 for the lowest income quintile, Rs2,037 for the second-income quintile and Rs1,896 for the third-income quintile. 'These figures reflect that the subsidy amount covers only half of the consumption for the poorest quintiles,' it said.

The government announced in November 2021 that it would implement the programme through Ehsaas-enabled kiryana or grocery merchants to provide the poor with subsidised food. As such, a kiryana merchant will require an Andriod phone, CNIC, SIM card registered against the same CNIC and a bank account for registration to become an agent of ERP.

National Bank of Pakistan will manage the implementation and subsidy disbursal processes. The subsidy amount will be credited into merchants' bank accounts in 24 hours along with a commission. The government will provide an eight per cent profit as an incentive to the kiryana store owner for every Rs1,000 worth of purchase.

'The implementation cost of ERP is very high compared to other similar programmes run by the federal government. The government will pay an 8pc commission to the kiryana store to disburse the subsidy while it is less than 1.5pc in the Ehsaas Kafaalat programme,' it said while referring to a separate scheme that...