Cargo vehicles get Rs100 per liters of support along with fixed monthly assistance
People wait their turn to get fuel at a gas station in Peshawar. Photo: Reuters/ File
ISLAMABAD/LAHORE/KARACHI:
In a rare display of coordinated fiscal firefighting, the center and provinces have moved in lockstep to roll out a sweeping targeted subsidy regime, shifting from blanket relief to precision aid as the country grapples with a steep fuel price shock fueled by global turmoil.
With petrol rising to Rs458.40 per liter and high-speed diesel to Rs520.35, the federal government, after consultations with the provincial leadership, has offloaded the implementation of emergency relief to the provinces, which will administer subsidized fuel quotas for motorcyclists, farmers and transporters at an estimated monthly cost of R65-70.
Finance Minister Senator Muhammad Aurangzeb, flanked by Oil Minister Ali Pervaiz Malik, said the leadership has decided “that we will announce a targeted subsidy program so that relief is not blanket but reaches those who really deserve it”.
Relief architecture: who gets what
As per the federal framework, a Rs100 per liter subsidy will be extended to two-wheelers, limited to 20 liters per month for three months. Small farmers will receive Rs1,500 per hectare as a one-time subsidy during the harvest season when diesel consumption peaks.
Cargo vehicles will get Rs100 per liter subsidy, along with fixed monthly assistance of Rs70,000 for trucks, Rs80,000 for large transport vehicles and Rs100,000 for public service buses, initially for one month, subject to revision.
Pakistan Railways will also receive support to keep fares affordable for low-income passengers.
Aurangzeb said the evolving global energy landscape required “careful resource management”, adding that the government would review the measures monthly while ensuring stability in essential sectors.
Provinces step in
Meanwhile, the provinces have collected nearly Rs 200 billion over three months under their NFC shares, with Punjab contributing around Rs 100 billion, Sindh Rs 51-52 billion, Khyber Pakhtunkhwa Rs 15 billion and Balochistan Rs 8-9 billion.
Punjab alone is expected to spend Rs 35 billion per month, covering 22 million cyclists, over 765,000 transport vehicles and more than a million farmers.
Sindh will extend support to 6-7 million motorcyclists through digital transfers of Rs2,000 per month, along with assistance to farmers through Hari cards.
Khyber-Pakhtunkhwa has already entered the implementation phase, offering Rs2,000 monthly to over 1.6 million motorcyclists, while Balochistan faces data constraints with limited vehicle registration coverage and reliance on BISP data for outreach.
Both Punjab and Sindh had pushed to pass on international fuel prices to consumers, arguing that targeted subsidies would provide more effective support to vulnerable segments instead of blanket relief.
‘Difficult decision’
In Karachi, Sindh Chief Minister Murad Ali Shah defended the difficult election, saying the government had to take “difficult decisions” and noting that general subsidies had benefited “the rich and the poor”.
He said a “one-month regimen which has four components” had been jointly developed with the centre.
Under this plan, motorcyclists will be “shielded from the trek”, with Rs2,000 monthly transfers beginning between April 15 and 20.
Farmers with land holdings below 25 acres will receive Rs1,500 per acre, with the chief minister expressing confidence that the subsidy would “compensate for the cost of diesel”.
On the other hand, Punjab revealed a parallel but more expansive relief push. Chief Minister Maryam Nawaz announced free public transport across routes in the city covering metro, bus and train services while also rolling out fuel subsidy for motorcyclists and farmers.
“Citizens will not have to buy tickets while traveling by public transport – Orange Line Train, Metro Bus Service, Speedo Bus and Green Electric Bus,” she said, calling it a major relief measure under Prime Minister Shehbaz Sharif’s austerity programme.
“By providing relief worth billions of rupees within a month, Prime Minister Shehbaz Sharif has made a sincere and strong effort to protect the public from hardship,” she added. “We will not leave the public alone in difficult times.”
Islamabad
In the federal capital, public transport has also been made free for 30 days. Interior Minister Mohsin Naqvi said the government would bear the cost of Rs350 million.
Meanwhile, a mobile app expected to go live next week will manage fuel quotas through CNIC-linked registrations and digital coupons.
The IT ministry has already ordered 24,000 mobile devices for distribution at 12,000 gas stations where oil marketing companies foot the bill.
Each station will be equipped with two dedicated nozzles for subsidized fuel, while real-time monitoring by OGRA will ensure compliance. The scheme will be limited to two-wheelers, with small cars and three-wheelers exempted.
