Rising Prices at Utility Stores: A Challenge for BISP Beneficiaries in Pakistan

The Benazir Income Support Programme (BISP), a vital social safety net in Pakistan, provides financial assistance to low-income families. A crucial aspect of BISP is access to subsidized food items through Utility Stores Corporation (USC) outlets. However, recent developments raise concerns, as the prices of six essential food items have increased at these stores.


6 Food Item Rates Increased in Utility Stores for BISP Beneficiaries | 8171 Kafalat Program



6 Food Item Rates Increased in Utility Stores for BISP Beneficiaries | 8171 Kafalat Program


Understanding the Situation

  • Price Increase: Several reports indicate a rise in the prices of essential food items like flour, sugar, rice, and pulses (dal chana) at Utility Stores.
  • Impact on BISP Beneficiaries: This price hike significantly impacts BISP beneficiaries who rely on these stores for affordable groceries.
  • Comparison with Market Rates: While the exact extent of the increase is unclear, some sources suggest the prices at Utility Stores might even exceed regular market rates for these items.

Reasons Behind the Price Increase

There could be several factors contributing to the price rise at Utility Stores:

  • Global Food Price Inflation: The global food price inflation trend could be impacting the government's ability to subsidize essential items at the same level.
  • Supply Chain Disruptions: Disruptions in global supply chains due to factors like the ongoing pandemic or the war in Ukraine might be affecting the procurement cost of these items.
  • Government Subsidy Adjustments: The government might be adjusting subsidy levels due to budgetary constraints.

6 Food Item Rates Increased in Utility Stores for BISP Beneficiaries | 8171 Kafalat Program


Consequences for BISP Beneficiaries

The price increase at Utility Stores poses a significant challenge for BISP beneficiaries in several ways:

  • Reduced Affordability: With rising prices, BISP beneficiaries might struggle to afford the same quantity of food items, potentially leading to food insecurity and malnutrition.
  • Diminished Programme Effectiveness: If Utility Stores become less affordable, the effectiveness of BISP in ensuring food security for low-income families could be compromised.
  • Increased Dependence on Open Market: BISP beneficiaries might be forced to turn to the open market for essential food items, which could be even more expensive.

6 Food Item Rates Increased in Utility Stores for BISP Beneficiaries | 8171 Kafalat Program

Potential Solutions

Addressing this issue requires a multi-pronged approach:

  • Government Intervention: The government can explore ways to increase subsidies or identify alternative procurement channels to maintain affordability at Utility Stores.
  • Transparency and Communication: Clear communication from the government regarding the reasons behind the price increase and any planned mitigation strategies is crucial.
  • Alternative Support Mechanisms: Exploring alternative support mechanisms, such as food vouchers or direct cash transfers, could be considered to ensure food security for BISP beneficiaries.

Looking Ahead

The recent price increase at Utility Stores highlights the ongoing challenges of ensuring food security for vulnerable populations in Pakistan. Addressing this issue requires a collaborative effort from the government, relevant authorities, and civil society organizations. By prioritizing the needs of BISP beneficiaries and exploring sustainable solutions, Pakistan can work towards a more equitable and food-secure future for all its citizens.


6 Food Item Rates Increased in Utility Stores for BISP Beneficiaries | 8171 Kafalat Program