The federal government has estimated Rs 6 billion subsidy for the Utility Stores Corporation (USC) to provide cheap commodities to masses. According to fiscal budget 2012-13 documents, government has enhanced subsidy for the USC by 200 percent to Rs 6 billion for next fiscal year as compared to Rs 2 billion for this fiscal year. Out of Rs 6 billion, Rs 2 billion has been allocated for Ramazan Package, while an amount of Rs 4 billion has been estimated for sugar subsidy.
Subsidies for Passco have been reduced to Rs 5.14 billion for fiscal year 2012-13 from Rs 19.6 billion of revised subsidies for current fiscal year. Out of total subsidies of Passco, Rs 1.14 billion has been allocated for wheat operation and Rs 4 billion for wheat reserve stocks.