ISLAMABAD: The government of Pakistan has introduced a major targeted fuel subsidy programme, shifting responsibility to provincial governments after a significant increase in petroleum prices.
The initiative aims to provide relief to motorcyclists, farmers, and transporters, with an estimated cost of Rs65–70 billion per month.
⛽ What Has Been Announced?
Finance Minister Muhammad Aurangzeb revealed the following monthly support:
- Rs70,000 for food transport vehicles
- Rs80,000 for large trucks
- Rs100,000 for public buses
- Rs1,500 per acre support for small farmers
The goal is to reduce the impact of rising fuel costs and control food inflation.
🏛️ Why Provinces Are Taking Charge
The federal government has limited financial space due to restrictions linked with the International Monetary Fund (IMF).
So far, the Centre has already reached its subsidy limit of about Rs154 billion, forcing provinces to step in.
💰 How Much Each Province Will Spend
The provinces will collectively pool around Rs200 billion for three months:
- Punjab: ~Rs100 billion
- Sindh: ~Rs51–52 billion
- Khyber Pakhtunkhwa: ~Rs15 billion
- Balochistan: ~Rs8–9 billion
🚲 Punjab’s Plan
Punjab will spend around Rs35 billion per month, including:
- Subsidy of Rs100 per litre for about 22 million bikers
- Support for 765,000 transport vehicles
- Financial help for over 1 million farmers
Digital tools like Kissan Cards and registration data will be used to distribute funds.
📱 Sindh’s Plan
Sindh will provide:
- Support to 6–7 million bikers via mobile apps
- Around Rs2,000 per month per biker
- Aid to 400,000 farmers through Hari Cards
Monthly cost is estimated at Rs15–18 billion.
🏔️ Khyber Pakhtunkhwa
The province, governed by Pakistan Tehreek-e-Insaf, has already started implementation:
- Rs2,000 monthly subsidy for 1.6 million bikers
- Estimated monthly cost: Rs5–7 billion+
⚠️ Balochistan Challenges
Balochistan faces difficulties due to:
- Limited vehicle registration data
- Weak digital systems in many districts
This means many unregistered users may not benefit initially.
📲 Mobile App System
The Centre is launching a mobile app-based system for subsidy distribution:
- Each biker gets a 20-litre subsidised quota
- Linked with CNIC and vehicle registration
- Digital vouchers will be generated and verified at petrol stations
To support this system:
- 24,000 mobile devices will be installed at petrol pumps
- Managed under supervision of Oil and Gas Regulatory Authority (OGRA)
- Oil companies will fund and manage devices
Special fuel dispensers will be allocated for motorbikes to ensure smooth distribution.
🧭 Conclusion
This subsidy programme is one of Pakistan’s largest targeted relief efforts, designed to support vulnerable groups after rising fuel prices.
While the plan promises significant relief, its success will depend on efficient implementation, accurate data, and provincial coordination.
The coming weeks will be critical as authorities roll out the system nationwide.
