When relief meets inflation

Shahid Shah
February 22, 2026

Millions of families in Sindh juggle the delicate balance between survival and devotion as Ramazan relief trickles in installments

When relief meets inflation


R

amazan is here. Mosques are packed; markets louder than usual. Long before the sun sets, the aroma of fried snacks fills the air from roadside stands. However, a more subdued feeling lies beneath it all. For many households, Ramazan is no longer about prayer and patience alone. In order to make it to Eid, every rupee must be stretched. There is concern.

This year, relief will be provided through two sources: one originates from Karachi; the other from Islamabad. Cash aid is promised by both. Instead of making individuals follow ration lines, both claim they wish to preserve ‘dignity.’ In the face of higher food prices, families are still figuring out how far that assistance will go.

For Muhammad Arif, a rickshaw driver in Korangi, expenses start even before Ramazan begins. “We can handle that if support arrives on schedule. If not, we incur loans.”

A Ramazan Relief Package 2026, valued at approximately Rs 22 billion, has been announced by the provincial administration under the leadership of Chief Minister Murad Ali Shah. Its main component is a Rs 5,000 direct cash handout given to each qualifying low-income household. The aid is intended for families making between Rs 32,000 and Rs 35,000 per month.

According to officials, the goal is to reach about 3.5 million households. This represents a sizeable portion of Sindh’s population. To maintain transparency and stop deductions or fraud, the funds are being distributed through approved banks with biometric identification.

For the poorest households, particularly those currently enrolled in the Benazir Income Support Programme or have just been validated through local surveys, the provincial plan offers free or subsidised flour and other necessities in addition to financial aid.

To stop hoarding and profiteering throughout the holy month, authorities have mandated stringent market monitoring. A local magistrate says that price control teams visit bazaars every day. “We are making an effort to keep necessities close at hand.”

Uninterrupted power during sehri and iftar hours is another significant assurance. K-Electric and other power providers have been instructed to refrain from loadshedding during the busiest periods of the day. This assurance holds genuine significance for families used to breaking their fast in the dark during past summers. For Shazia, a mother of three, each blessing counts. “It is a huge relief if the fan and lights stay on at iftar.”

Given the current prices, the Rs 5,000 help appears insignificant. Flour, lentils, cooking oil and dates are already selling for more than they did the previous year, a survey of local markets has shown. While weighing rice for a customer, shopkeeper Abdul Sattar remarks, “This amount is helpful but it will not last long. Ramazan does not pause inflation.”

Prime Minister Shahbaz Sharif has unveiled a Rs 38 billion Ramazan package at the federal level. Through digital transfers connected to national welfare databases, eligible families throughout Pakistan will get Rs 13,000 each under this scheme. The federal approach, which replaced the previous subsidy system connected to Utility Stores, relies on technology-driven verification and direct payments to bank accounts or mobile wallets.

The announcements of the federal and provincial programmes have caused both uncertainty and hope for families in Sindh. Some of the households expect to benefit from both. Others are not sure of their eligibility. Hira, a university student, is helping her parents with the procedure. “We keep getting messages telling us to check eligibility again and again,” she says.

The switch from ration distribution to cash payments is the bigger change. Authorities say that having money enables families to put their own needs first. Households can purchase vegetables, medications or settle utility bills in place of getting set amounts of flour or sugar.

According to Bashir Ahmed, a retired government employee, “The old system made people feel exposed. Queuing up for food was hurtful. Cash distributions are better. It demonstrates respect.”

Timing is crucial.

Traders admit that before relief payments reach beneficiaries in full, Ramazan demand frequently drives prices higher. Economists caution that the actual value of aid is diminished when payments are delayed. This effect is instantly noticeable in kitchens. According to Arif, “Help feels smaller if prices rise first. Policy interventions typically move slower than the market.”

Provincial officials maintain that they are working to provide services in addition to cash aid. The goal is to establish a more stable atmosphere during the month of fasting by managing the electrical supply, cracking down on hoarders, and conducting coordinated pricing checks. Phased payments, according to the government, are being made to provide widespread coverage free from administrative difficulties.

Ramazan relief is still viewed by many as a short-term buffer rather than a way to deal with chronic poverty. Small vendors, domestic help and daily wage earners still have to deal with unpredictable wages as costs rise. Because of its custom of giving and hospitality, the holy month frequently makes financial strain worse rather than better.

Shazia says Ramazan is meant to inculcate patience. “But having money for food makes patience easier.”

As the evening deepens and the city fills with the sound of the call to prayer, families assemble around tables. Whether it is the extra federal funding or the Rs 5,000 from the Sindh government, any aid helps get through tough times. These, however, do not take away the underlying stress.

Arif, standing next to his rickshaw, says, “Ramazan is all about blessings. Assistance by the government is an advantage but stability is what we truly pray for so that the following Ramazan, we depend more on our own income and less on such packages.”


The writer is a business reporter at The News.

When relief meets inflation