Prime Minister Shehbaz Sharif Urges Provinces to Release Fuel Subsidy Funds for Digital Disbursement

Prime Minister Shehbaz Sharif has issued a formal call to provincial governments to expedite the release of their respective financial contributions for the national fuel subsidy program, aimed at supporting motorcyclists and the commercial transport sector during the current energy crisis. The federal administration recently transitioned from a blanket subsidy model to a targeted relief framework, where provinces are expected to contribute approximately 200 billion rupees over a three month period. This funding pool is structured according to the National Finance Commission shares, with Punjab contributing 100 billion rupees, Sindh providing 52 billion, Khyber Pakhtunkhwa 15 billion, and Balochistan nearly 9 billion rupees. The Prime Minister emphasized that provincial cooperation is essential to maintaining the momentum of this critical economic intervention.

During a high level session held at the Prime Minister Office to review the progress of austerity and relief measures, the premier lauded Balochistan Chief Minister Sarfaraz Bugti for being the first to disburse the provincial share. This proactive stance by the Balochistan government has allowed the federal authorities to commence the distribution of relief funds ahead of schedule. Initially planned for a Monday rollout, the disbursement process began on Saturday to provide immediate liquidity to transporters. The Prime Minister highlighted that the use of digital wallets for these transfers ensures a transparent and secure delivery mechanism, eliminating middlemen and ensuring that every rupee reach the intended beneficiaries in the transport and logistics sectors.

The technical briefing during the meeting confirmed that all four provinces have finalized the data sharing process with the federal center, providing detailed counts of public transport buses, trucks, and freight vehicles. This data driven approach allows the government to allocate subsidies with precision. Currently, large passenger buses are receiving a monthly digital subsidy of 100,000 rupees, while smaller transit vehicles like minibuses and wagons are getting 40,000 rupees to prevent fare hikes. To stabilize the cost of essential commodities, the government is also providing 70,000 rupees to trucks, 80,000 rupees to large freight vehicles, and 35,000 rupees to delivery vans. These digital payments are designed to offset the rising costs of fuel and protect the general public from inflationary shocks.

The Prime Minister reiterated that the government has successfully provided a total relief package worth 129 billion rupees over the past three weeks, despite significant regional tensions and global market volatility. A major component of this relief includes a strategic reduction in the petroleum levy by 80 rupees per litre, which provided immediate breathing room for fuel consumers. Furthermore, the administration has allocated a 6 billion rupee subsidy to Pakistan Railways, ensuring that train fares for both passengers and freight remain unchanged. Additionally, the planned 25 percent quarterly increase in toll taxes has been withdrawn to further lower the operational costs for the goods transport industry across the national highway network.

The session also reviewed reports from the Intelligence Bureau regarding the implementation of austerity measures across various government departments. Officials confirmed that national fuel reserves are sufficient to meet the country requirement, and the monitoring of subsidy distribution is being conducted in real time through digital platforms. The Prime Minister concluded the meeting by affirming that the government remains committed to supporting the public through these challenging economic circumstances. By combining digital finance tools with institutional transparency, the administration intends to build a more resilient social safety net that can respond dynamically to energy crises and ensure that state resources are utilized with maximum efficiency.

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