- The committee reviews grants across provinces, GB and AJK.
- Prime Minister Shehbaz Sharif approves decision to withdraw subsidy.
- DPM Ishaq Dar leads improvements in data systems.
The federal government has decided to end fuel subsidies for motorcyclists, small farmers and public transport and freight operators following a sharp drop in global oil prices.
The decision was taken at a meeting of the National Fuel Subsidy Steering Committee chaired by Deputy Prime Minister Senator Ishaq Dar on Monday.
The committee reviewed the implementation of the subsidy program for motorcyclists, small farmers and public transport and freight operators across the provinces as well as in Gilgit-Baltistan and Azad Jammu and Kashmir (AJK).
According to a statement, the committee noted that global fuel prices had fallen significantly and the resulting relief had already been passed on to consumers.
It subsequently agreed to withdraw the subsidy scheme with Prime Minister Shehbaz Sharif’s approval.
DPM Dar appreciated the committee’s work and noted sustained inter-provincial coordination.
He directed that the lessons learned from the exercise be used to address gaps in data and delivery mechanisms and to strengthen future initiatives aimed at improving public service delivery.
The meeting was attended by Special Assistant to Prime Minister Tariq Bajwa, the Federal Secretaries for Petroleum and Information Technology, the Governor of State Bank of Pakistan (SBP) and senior representatives from the provinces of Gilgit-Baltistan and AJK.
The subsidy program was introduced after fuel prices rose sharply following the closure of the Strait of Hormuz in the wake of the US-Israeli attack on Iran in February this year.
Under the scheme, owners of motorcycles, rickshaws and 800cc vehicles received subsidy ranging from Rs50 to Rs100 per litre.
Public and freight transport operators were given monthly subsidies of between Rs70,000 and Rs100,000 to help keep fares and transport costs low, while small farmers received a diesel subsidy of Rs100 per litre.
Last week, the government reduced petrol price by Rs74.28 per liter and diesel price by Rs67.31 per litre, bringing the new prices to Rs299.50 and Rs311.47 per litre, respectively.
The reduction followed a peace deal between the US and Iran and the reopening of the Strait of Hormuz, a key global oil shipping route.
Fuel prices had hit record levels earlier this year as global energy markets came under pressure. In April, petrol prices rose by Rs 137. per liter at a record high of Rs 458.40. per liter while diesel increased from Rs.275.70. per liter to as high as Rs 520.35.
Gasoline is widely used by motorists, rickshaw drivers and motorcyclists, making price increases particularly burdensome for middle- and low-income households.
Diesel, meanwhile, is widely used in freight transport and agriculture, meaning higher prices could have a wider impact on inflation and supply chains.
