n Azad Jammu and Kashmir, Ramazan relief has traditionally been integrated into federal initiatives rather than shaped by extensive standalone local programmes. In earlier years, assistance largely took the form of commodity-based subsidies. For example, in 2022, the AJK government announced a Rs 560 million subsidy package that included reduced flour prices distributed through Utility Stores and Ramazan Bazaars. While such measures provided direct access to staples, they were often accompanied by complaints of long queues, limited coverage and administrative inefficiencies.

By 2025, the model had evolved toward digital cash transfers aligned with national reforms. Payments were routed through BISP-linked mechanisms with biometric verification, reducing some of the leakages associated with in-kind distribution. However, implementation in AJK’s mountainous areas continued to face structural challenges, particularly related to banking access and connectivity.

Prime Minister Shahbaz Sharif has announced a Ramazan Relief Package aimed at supporting vulnerable families across provinces. The beneficiaries of the Rs 38 billion relief package include residents of Azad Jammu and Kashmir. Under the initiative, each eligible household will receive Rs 13,000 through direct digital transfers via bank accounts or mobile phone wallets. The funds will be disbursed under the oversight of the State Bank of Pakistan to ensure transparency, eliminate middlemen and prevent political discrimination.

The allocation marks a notable increase from last year’s Rs 20 billion package, which provided approximately Rs 5,000 per family. Of the total, Rs 10 billion has been earmarked for families already enrolled in the Benazir Income Support Programme’s Kafalat scheme. Another Rs 28 billion will target additional beneficiaries identified through federal databases.

The shift to a fully cashless system represents a clear departure from earlier in-kind distributions, reflecting the government’s emphasis on efficiency and dignity in welfare delivery.

The announcement comes amid moderating but persistent inflation. In early 2026, headline CPI stood at around 5.8 percent and food inflation at 3.9 percent. Housing and utility costs rose at more than 7 percent. For many households, Ramazan brings heightened spending on food, electricity and communal obligations, amplifying financial pressure.

While full details of the 2026 package are yet to be released, past experience suggests that the effectiveness of such initiatives hinges on implementation. The package has generated cautious optimism in the AJK, where many view the Rs 13,000 allocation as a meaningful increase compared to previous years. Yet, perspectives on ground suggest a more nuanced reality.

Syed Naheed Shah, Islamic Relief seasonal programme coordinator, who oversees relief and development initiatives across multiple districts in the AJK, says that while the Rs 13,000 transfer is “a positive and timely gesture,” it is not sufficient to support a vulnerable household throughout the holy month. With rising food and utility costs, the amount may ease immediate pressure, but does not provide lasting financial security.

Shah notes that seasonal relief packages nevertheless play an important social role.

“They create hope and temporary stability during a period when household expenses increase,” he says, adding that timely assistance allows families to meet essential needs with dignity. However, he cautions that the real measure of success lies in implementation.

In the AJK, there is often a noticeable gap between official announcements and on-ground delivery due to delays, targeting concerns and logistic hurdles in remote areas. Shah believes that communities ultimately judge such initiatives by what they practically receive rather than what was promised.

The success of the 2026 package in the AJK will depend heavily on how effectively digital delivery mechanisms function in a region marked by rugged terrain and uneven infrastructure. Limited ATM networks, patchy internet connectivity and low digital literacy levels pose barriers for some rural communities. While partnerships with commercial banks and biometric verification systems aim to enhance transparency, access gaps risk excluding certain vulnerable groups if not adequately addressed.

Beyond logistic concerns, in recent years, the AJK has witnessed public protests linked to electricity bills, wheat flour subsidies and broad economic hardship. These episodes underline the sensitivity surrounding relief measures and the importance of timely, equitable implementation.

The Ramazan Relief Package 2026 reflects Pakistan’s continued reliance on targeted welfare to cushion vulnerable households against inflation and seasonal financial strain. Such interventions undoubtedly provide short-term buffers and social reassurance. However, the question remains: can repeated seasonal assistance foster long-term resilience, or does it risk entrenching dependency?

While relief packages address immediate hardship, sustainable poverty reduction requires parallel structural reforms, including improved tax mobilisation, investment in skills and education, export growth and local economic opportunities. In the AJK context, complementing cash transfers with livelihood programmes and community development initiatives could help transition households from periodic relief toward greater self-reliance.

The extent of impact will be determined by the effectiveness of delivery, the inclusivity of targeting and whether such relief serves as a bridge toward economic empowerment or a recurring stopgap against persistent vulnerability.

The writer is a freelance contributor from Azad Jammu and Kashmir, currently pursuing an MS in development studies at NUST, Islamabad. She can be reached at hunainmehmud101 @gmail.com and on X: @hunain_mahmood.