Pakistan begins digital cash transfers for transporters as fuel relief takes effect

rucks wait on a highway in Karachi, Pakistan, on November 26, 2017. (AFP/File)
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Updated 04 April 2026
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Pakistan begins digital cash transfers for transporters as fuel relief takes effect

  • Subsidies for buses, vans and freight trucks are being disbursed through digital wallets
  • Move follows multi-level relief measures to offset fuel price surge driven by Iran war

ISLAMABAD: Pakistan has begun digitally disbursing fuel subsidies to public transport and freight operators through mobile wallets, Prime Minister Shehbaz Sharif said on Saturday, as the government moves to operationalize relief measures announced after a sharp rise in petroleum prices.

Pakistan raised fuel prices to historic highs on Thursday night, with petrol reaching Rs458.41 per liter and diesel Rs520.35, before Sharif announced a Rs80 cut in the petrol levy to ease the burden on consumers.

The digital disbursement is part of the implementation of a broader package rolled out by federal and provincial authorities to cushion consumers from surging fuel costs amid the ongoing US-Israeli conflict with Iran.

“The provision of relief funds to public transport and goods-carrying vehicle owners through digital wallets has been initiated,” Sharif said while chairing a review meeting on petroleum supplies and relief measures, according to a statement from his office.

“An effective and transparent system has been introduced to transfer subsidies digitally to buses, wagons and goods transport vehicles,” he added.

The government announced a range of relief measures this week, including free public transport in Islamabad, fare freezes on Pakistan Railways and targeted subsidies for transporters, farmers and motorbike users across provinces.

The government says the measures are designed to contain inflationary pressures and prevent a surge in transport and logistics costs in a country heavily dependent on imported fuel.

The Prime Minister’s Office also said adequate petroleum reserves were available to meet national demand despite regional tensions, as officials continue to monitor supply levels amid ongoing volatility in global energy markets.

Sharif reiterated that providing relief to economically vulnerable groups remains a top priority, saying the government would not “leave the common man alone” during difficult times and would use savings from austerity measures to support citizens.