- The committee reviews grants in the provinces, GB and AJK.
- Prime Minister Shehbaz Sharif approves the decision to withdraw subsidies.
- DPM Ishaq Dar leads data systems improvements.
The federal government has decided to remove fuel subsidies for motorcyclists, small farmers and public and freight transport operators following a sharp drop in global oil prices.
The decision was taken on Monday at a meeting of the National Steering Committee on Fuel Subsidy chaired by Deputy Prime Minister Senator Ishaq Dar.
The committee reviewed the implementation of the subsidy scheme for motorcyclists, small farmers and public and goods transport operators in the provinces, as well as Gilgit-Baltistan and Azad Jammu and Kashmir (AJK).
According to a statement, the commission noted that global fuel prices had fallen significantly and the resulting relief had already been passed on to consumers.
He then agreed to withdraw the subsidy program with the approval of Prime Minister Shehbaz Sharif.
DPM Dar appreciated the work of the committee, highlighting sustained interprovincial coordination.
He directed that lessons learned from the exercise be used to address gaps in data and delivery mechanisms, and to strengthen future initiatives to improve public service delivery.
The meeting was attended by Special Assistant to Prime Minister Tariq Bajwa, Federal Secretaries on Petroleum and Information Technology, Governor of State Bank of Pakistan (SBP) and senior representatives of Gilgit-Baltistan and AJK provinces.
The subsidy program was introduced after fuel prices soared following the closure of the Strait of Hormuz following the US-Israeli attack on Iran in February this year.
Under the scheme, owners of motorcycles, autorickshaws and 800 cc vehicles received subsidies ranging from Rs 50 to Rs 100 per liter.
Public transport and freight operators received monthly assistance of between Rs 70,000 and Rs 100,000 to help them keep transport fares and costs low, while small farmers received a diesel subsidy of Rs 100 per liter.
Last week, the government reduced the price of petrol by Rs 74.28 per liter and diesel by Rs 67.31 per litre, taking the new rates to Rs 299.50 and Rs 311.47 per liter, respectively.
The reduction follows a peace deal between the United States and Iran and the reopening of the Strait of Hormuz, a key global route for transporting oil.
Fuel prices hit record highs earlier this year as global energy markets came under pressure. In April, petrol prices increased by Rs 137 per liter to a record high of Rs 458.40 per liter, while diesel increased from Rs 275.70 per liter to Rs 520.35 per litre.
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 transportation and agriculture, meaning higher prices can have a broader impact on inflation and supply chains.
