Religious scholars saw this as a populist move, and demanded immediate ban on the practice that was ``usurping the rights of the poor, destitute and deserving people,'' leading newspapers reported yesterday. The subsidy was provided from the Zakat funds, created by contributions from Muslims as per Islamic guidelines for helping the poor.

The Muslims are required to contribute 2.5 per cent of the value of their assets and properties annually towards this cause.

Sharif Government had announced the subsidised rate of wheat-flour, the staple diet of the country, amidst growing inflation in the wake of economic crisis due to imposition of economic sanctions by the international community for carrying out nuclear tests in May earlier this year.

It is believed thatcrores of rupees have accumulated in the fund since former military ruler, Zia-ul-Haq, made it mandatory for banks to deduct Zakat from accounts of all Pakistani nationals.