PM asks provinces to release funds for targeted fuel subsidies

ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday called on the provinces to release their shares for the fuel subsidy programme aimed at supporting motorcyclists as well as public and goods transport users during what officials described as an unprecedented energy crisis in the country.

The federal government had announced targeted relief measures on Thursday, ending the blanket fuel subsidy that had applied across income groups. Under the new arrangement, the provinces are leading the administration of subsidised fuel quotas.

According to details shared in the meeting, the provinces are collectively contributing around Rs200 billion for a three-month period in line with their National Finance Commission shares. This includes about Rs100bn from Punjab, Rs51-52bn from Sindh, Rs15bn from Khyber Pakhtunkhwa and around Rs8-9bn from Balochistan.

Chairing a meeting to review austerity measures, the prime minister praised Balochistan Chief Minister Sarfaraz Bugti for releasing the province’s share under the federal relief package. A statement issued by the Prime Minister’s Office quoted him as saying:

“Balochistan’s government has already paid the decided share in the package, which is commendable.I hope that other provinces will also pay their share soon”, he stated.

The prime minister said the government had begun disbursing subsidies to owners of motorcycles, trucks and public buses through digital wallets in what he described as a transparent and secure manner. The meeting was told that although the initial plan was to start payments from Monday, the process had already begun on Saturday.

Officials also informed the meeting that all provinces had provided the federal government with data on the number of public transport buses, goods transport vehicles and trucks.

Subsidy details and relief measures

During the meeting, PM Shehbaz said the government was taking all possible steps and would continue to do so to provide relief to the public in difficult circumstances. He reviewed progress on the implementation of petroleum product subsidies in the context of recent regional tensions.

The meeting received a briefing on the pace of subsidy distribution, as well as the country’s fuel reserves and consumption levels. The prime minister said passenger buses were being given a monthly subsidy of Rs100,000, while minibuses and wagons were receiving Rs40,000 per month to help prevent fare increases.

He added that trucks were being provided Rs70,000 per month, large freight vehicles Rs80,000 per month, and delivery vans Rs35,000 per month in order to contain the prices of essential food items.

The prime minister said the government had extended a public relief package worth Rs129 billion over the past three weeks and added that the public would not be left unsupported during the current period.

He further said immediate relief had been provided through a reduction of Rs80 per litre in the petroleum levy. He also said Pakistan Railways was extending a subsidy of Rs6bn, due to which passenger and freight train fares had not been increased.

In addition, he said the quarterly 25 per cent increase in toll tax had been withdrawn.

The meeting was informed that the country had sufficient fuel reserves to meet national needs. It was also told that the Intelligence Bureau had submitted a report on the implementation of the government’s austerity measures.