Cargo vehicles will get assistance of Rs 100 per liter, along with fixed monthly assistance
People wait for their turn to refuel at a gas station in Peshawar. Photo: Reuters/File
ISLAMABAD/LAHORE/KARACHI:
In a rare display of coordinated fiscal wrangling, the Center and provinces have acted in concert to roll out a sweeping targeted subsidy regime, moving from blanket aid to specific support, as the country grapples with a sharp fuel price shock triggered by the global turmoil.
With a hike in petrol to Rs 458.40 per liter and high-speed diesel to Rs 520.35, the federal government, after consultations with provincial leaders, has handed over execution of the relief to the provinces, which will administer subsidized fuel quotas to motorcyclists, farmers and transporters at an estimated monthly cost of Rs 65-70 billion.
Senator Muhammad Aurangzeb, Minister of Finance, accompanied by Minister of Oil Ali Pervaiz Malik, said the leaders decided “to announce a targeted subsidy program so that the aid is not blanket, but reaches those who really deserve it.”
Fallback architecture: who gets what
Under the federal framework, a subsidy of Rs 100 per liter will be extended to two-wheelers, capped at 20 liters per month for three months. Small farmers will get Rs 1,500 per acre as one-time support during the harvest season when diesel consumption peaks.
Cargo vehicles will get assistance of Rs 100 per litre, along with a fixed monthly assistance of Rs 70,000 for trucks, Rs 80,000 for large transport vehicles and Rs 100,000 for public service buses, initially for one month, subject to review.
Pakistan Railways will also receive support to maintain affordable fares for low-income passengers.
Aurangzeb said the changing global energy landscape required “prudent management of resources”, adding that the government would review measures monthly while ensuring stability in critical sectors.
The provinces intervene
Meanwhile, the provinces have pooled nearly Rs200 billion over three months under their NFC shares, with Punjab contributing around Rs100 billion, Sindh between Rs51-52 billion, Khyber Pakhtunkhwa between Rs15 billion and Balochistan between Rs8-9 billion.
Punjab alone is expected to spend Rs 35 billion per month, covering 22 million bikers, over 765,000 transport vehicles and over a million farmers.
Sindh will extend support to 6-7 million bikers through digital transfers of Rs 2,000 per month, along with assistance to farmers through Hari cards.
Khyber-Pakhtunkhwa has already entered the implementation phase, offering Rs 2,000 per month to over 1.6 million bikers, while Balochistan faces data constraints, with limited vehicle registration coverage and reliance on BISP data for awareness.
Punjab and Sindh have pushed for international fuel prices to be passed on to consumers, arguing that targeted subsidies would more effectively support vulnerable segments rather than blanket aid.
“Difficult decision”
In Karachi, Sindh Chief Minister Murad Ali Shah defended the tough choices, saying the government had to make “difficult decisions” and stressing that blanket subsidies had benefited “both the rich and the poor.”
He said a “one-month regime, comprising four components” had been developed jointly with the Centre.
Under the plan, motorcyclists will be “hike protected”, with monthly transfers of Rs 2,000 starting between April 15 and 20.
Farmers with land holdings less than 25 acres will get Rs 1,500 per acre, with the chief minister expressing confidence that the subsidy would “offset the cost of diesel”.
On the other hand, Punjab unveiled a parallel but larger relief campaign. Chief Minister Maryam Nawaz announced free public transport on intra-city routes, covering metro, bus and train services, while also introducing fuel subsidies for bikers and farmers.
“Citizens will not have to buy tickets when traveling in public transport – orange line, metro service, Speedo bus and green electric bus,” she said, calling it a major relief measure under Prime Minister Shehbaz Sharif’s austerity agenda.
“By providing aid worth billions of rupees in a month, Prime Minister Shehbaz Sharif has made a sincere and strong effort to shield 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 350 million rupees.
At the same time, a mobile application, which is expected to go live next week, will manage fuel quotas via CNIC-linked registrations and digital vouchers.
The IT ministry has already ordered 24,000 mobile devices to be distributed at 12,000 petrol stations, with oil marketing companies footing the bill.
Each station will be equipped with two dedicated nozzles for subsidized fuel, while real-time monitoring by OGRA will ensure compliance. The program will be limited to two-wheelers, with small cars and three-wheelers excluded.
