ISLAMABAD, Apr 03 (APP): Minister for Finance and Revenue Senator Muhammad Aurangzeb on Thursday unveiled a targeted subsidy package aimed at easing the burden of a sharp increase in petroleum prices, following government consultations amid ongoing regional tensions.
The move comes after a significant rise in fuel prices, with petrol climbing to Rs458.40 per litre and high-speed diesel reaching Rs520.35 per litre, effective April 3, driven by a steep surge in global crude oil rates.Addressing a joint press conference with Minister for Petroleum Ali Pervaiz Malik, the finance minister emphasized that the government had chosen a targeted relief approach instead of blanket subsidies to ensure assistance reaches the most deserving segments.“The leadership has decided to introduce a targeted subsidy programme so that relief benefits those who genuinely need it,” Aurangzeb said, adding that the initiative is intended to reduce inflationary pressure on low- and middle-income groups.He noted that the decision followed a comprehensive review of global oil supply and pricing trends over the past month, particularly considering emerging regional challenges, while Pakistan has so far managed to avoid major supply disruptions.Under the package, motorcycle users will receive a subsidy of Rs100 per litre, capped at 20 litres per month, for a period of three months.
To support farmers during the harvesting season, small landowners will be provided a one-time subsidy of Rs1,500 per acre, acknowledging increased diesel usage in agricultural activities.The transport sector will also benefit, with freight vehicles receiving Rs100 per litre support.
Additionally, fixed monthly assistance will be provided, including Rs70,000 for trucks, Rs80,000 for large transport vehicles, and Rs100,000 for public service buses, initially for one month and subject to review.The government will further extend support to Pakistan Railways to help maintain affordable fares, particularly for lower-income passengers.Aurangzeb stated that the evolving global energy situation demands prudent resource management, adding that the government will review the subsidy measures on a monthly basis.He also indicated that demand management strategies, including revised market timings in coordination with provinces, are under consideration to conserve energy and maintain economic stability.
The finance minister reiterated that the government’s policy focus remains on directing limited resources toward the most vulnerable segments while ensuring stability in key sectors amid ongoing economic uncertainties.
