Murad approves transport and farmer subsidies amid fuel price surge

KARACHI: Sindh Chief Minister Murad Ali Shah on Wednesday approved a targeted subsidy programme for public transport and sanctioned additional financial support for small farmers as part of what officials described as a broader plan to reduce the impact of rising global fuel prices.

Chairing a meeting at his office, the chief minister reviewed steps aimed at keeping public transport fares within reach and sustaining the sector amid a sharp rise in petrol and diesel prices.

Officials told the meeting that because of the prevailing global geopolitical situation, diesel prices had increased by more than Rs244 per litre and petrol by Rs120 per litre. They said the increase risked pushing up fares and could also reduce ridership, particularly among low-income commuters. "The government will not allow the burden of increased fuel prices to be passed on to the common man," Murad said, adding that the subsidy would help preserve existing fare levels and ensure uninterrupted transport services across Sindh.

Transport subsidy mechanism

Under the proposed arrangement, the federal and provincial governments will jointly bear the subsidy cost. Transport operators will receive financial assistance according to vehicle type and route length, on the condition that fares are not raised.

The meeting was informed that Sindh’s transport system includes more than 10,800 vehicles operating on 224 routes and serving nearly 1.9 million passengers every day. Officials said the estimated monthly subsidy was Rs2.15 billion and would cover both urban and inter-district transport operations.

To improve transparency, the subsidy will be distributed through a digital, app-based system. The process will include verification of route permits, vehicle fitness certificates and bank account details. Payments will be made directly to operators, while oversight will include inspections and passenger feedback.

Officials also said safeguards including OTP verification, fuel benchmarks and periodic reviews would be built into the system.

Support for small farmers

Separately, the chief minister approved a Rs3 billion subsidy for 366,000 small farmers to offset the effect of higher diesel prices during the wheat harvesting season.

He directed the authorities to begin the programme immediately and said small farmers owning between one and 25 acres were the backbone of the rural economy and needed protection from financial pressure.

Murad said the government was moving away from untargeted subsidies toward what he described as a more efficient and transparent system designed to deliver relief to the most deserving groups, including transporters, farmers and daily commuters, while maintaining fiscal discipline.

He also instructed all relevant departments to speed up implementation and ensure coordination so the initiatives could be executed on time.