ISLAMABAD: Pakistan’s Sindh province has unveiled a targeted subsidy package worth Rs55 billion ($197 million) to protect vulnerable segments of society from the recent fuel price hike, Chief Minister of Pakistan’s Sindh province, Murad Ali Shah, said on Friday, amid rising global energy prices due to the United States-Israeli war on Iran.
Pakistanis faced record fuel price increases on Friday as petrol and diesel prices rose by up to 54 percent, adding pressure to a cash-strapped nation already grappling with high inflation.
The new prices took petrol to Rs458.40 ($1.65) and diesel to Rs520.35 ($1.87) per liter, with economists warning the hike would push up food prices and living costs in the South Asian country.
CM Shah said the regional situation had significantly raised global oil prices and mounted pressure on Pakistan and that his government had decided to allocate $197 million to offset the impact on vulnerable segments.
“We have limited fuel and gas reserves, which are not sufficient to meet domestic needs. While global oil prices have surged, the federal government initially maintained prices, but that blanket subsidy led to increased consumption and fiscal burden,” he said in a statement issued from his office.
“A one-month targeted relief regime is being finalized, with four key components jointly implemented by the federal and provincial governments.”
Pakistan’s Petroleum Minister Pervez Malik said late Thursday that the increase was “unavoidable.” He said the government was compelled to raise petrol prices by 137 rupees (49 cents) per liter, following a 20 percent increase last month. Diesel prices were increased overnight by 184.49 rupees (67 cents) per liter, a rise of about 54.9 percent.
The unprecedented price increase came after Prime Minister Shehbaz Sharif said regional instability had affected Pakistan’s fragile economy. He said the government was pursuing diplomatic efforts to ease tensions and encourage dialogue between the parties involved. Pakistan has offered to host peace talks, though no dates have been announced for any such meetings in Islamabad.
RELIEF FOR MOTORCYCLE OWNERS
The Sindh chief minister announced a major relief initiative for motorcycle users, describing them as one of the “most affected groups.”
“In Sindh alone, there are around 6.7 million registered motorcycles. Each registered bike owner will receive Rs2,000 per month, equivalent to a subsidy of Rs100 per liter for 20 liters,” he said.
To facilitate this, the Sindh Excise Department has developed a digital application through which owners can register using their computerized national identity card (CNIC) and bank details, according to Shah.
The chief minister also announced that motorcycle ownership transfers would be made free of cost for 15 days to ensure rightful beneficiaries receive the subsidy.
“We urge citizens to register their bikes in their own names within 15 days. After that, payments will be transferred directly to verified accounts,” he added.
SUPPORT FOR SMALL FARMERS
Shah said around 336,000 small growers, owning between 1 to 25 acres, will receive Rs1,500 per acre.
“This subsidy is aimed at supporting diesel costs for wheat threshing. Since verified data is already available, payments will begin from next week,” he said, adding that previous subsidy programs for fertilizers had been implemented successfully without complaints.
PUBLIC TRANSPORT
To prevent an increase in transport fares, the government has introduced a subsidy package for transporters, according to Shah.
Under the scheme, passenger buses will receive Rs100,000 per vehicle, two-axle goods trucks will receive Rs70,000, and heavy goods transport vehicles will get Rs80,000.
“City buses consume around 40 liters daily, and with diesel prices rising sharply, we will provide an additional Rs140,000 to ensure fares are not increased,” Shah said, adding that additional support will be provided to intra-city buses due to higher fuel consumption.
Meanwhile, transporters will be required to give an undertaking not to raise fares, while the Sindh Transport Department is in talks with stakeholders to ensure compliance.
“This intervention is aimed at controlling inflation and protecting commuters,” the chief minister said.
He said his government was committed to shielding the most vulnerable segments from economic shocks.
“Our priority is to provide targeted relief where it is needed most, while maintaining fiscal responsibility,” Shah said. “These measures will ensure that the common man is protected during this challenging time.”
