the government should provide hajj subsidy to the pilgrims

Hajj Policy 2020: Is Subsidy Possible?

Reading Time: < 1 minute

The government introduced the Hajj policy 2020 and set the price for the northern region at Rs 490,000.

This is an increase of Rs 53,00o as compared to 2019.

The previous government priced it at Rs 280,000 in 2018, but the PTI government jacked it up to Rs 437,000 last year.

There is a total of 107,000 pilgrims who will perform hajj under the government scheme. If we multiply that number with the raised price i.e Rs 53,000, it comes out to Rs 5,671,000,000 i.e. Rs 6 Billion, which is not a significant amount.

The government can abolish the subsidy for the Sugar mills to match that amount. It will benefit the pilgrims’ most of them belong to the middle class who are suffering from the current wave of inflation.

Alternatively, FBR always fails to meet its revenue target. So why not adjust the Hajj subsidy amount with the FBR’s revenue collection.

I mean we can assume that FBR just collected Rs 6 Billion less than the actual revenue. And maintain the beneficial subsidy for the pilgrims.

Remember, the government can’t contain its expenditures just by cutting subsidies of the middle class.

Rather, it has to increase its revenue somehow to pull out of the economic crisis.

So I expect Prime Minister Khan to personally review the hajj policy 2020 and provide immediate relief to thousands of pilgrims.

Leave a Comment