Government Decides to Phase-Out Ehsas Ration Program

The federal government has decided to gradually move away from the Ehsas Ration Riayat Program. According to the Letter of Intent (LOI), which the government has sent to International Monetary Fund (IMF) for formal approval of seventh and eighth reviews of Extended Fund Facility (EFF), the coalition government has committed to gradually phase-out the flagship initiative of previous government. However, the government has intended to expand Benazir Income support program (BISP) to Rs. 316 billion during the current year. As per LOI, the government has assured IMF to build foreign exchange reserves to cover for ten weeks of imports by the end of fiscal year 2023. The government has further committed that it would not use these funds ever. The letter further states that during the course of next few months, the finance ministry would impose new revenue measures worth Rs. 150 billion. This, in turn, would aid government to continue with its policy of market determined exchange rate. The government has also committed to upgrade the Debt Management Office (DMO) in LOI. The office would be responsible for designing and implementing the debt management strategy. Such a strategy would help government in consolidating the functions of disintegrated debt recommendations.