- The committee reviews subsidies in the provinces, GB and AJK.
- Prime Minister Shehbaz Sharif approves the decision to withdraw the subsidy.
- DPM Ishaq Dar leads improvements in data systems.
The federal government has decided to suspend fuel subsidies for motorcyclists, small farmers and public and freight transport operators following a sharp drop in global oil prices.
The decision was taken on Monday at a meeting of the National Steering Committee on Fuel Subsidies, chaired by Deputy Prime Minister Senator Ishaq Dar.
The committee reviewed the implementation of subsidy program for motorcyclists, small farmers and public and goods transport operators in all provinces as well as in Gilgit-Baltistan and Azad Jammu and Kashmir (AJK).
According to a statement, the committee noted that global fuel prices had fallen significantly and the resulting relief had already been passed on to consumers.
He later agreed to withdraw the subsidy scheme with the approval of Prime Minister Shehbaz Sharif.
Chief Minister Dar appreciated the work of the committee and highlighted the sustained inter-provincial coordination.
It mandated that lessons learned from the exercise be used to address gaps in data and delivery mechanisms, and to strengthen future initiatives aimed at improving public service delivery.
The meeting was attended by Special Assistant to Prime Minister Tariq Bajwa, Federal Secretaries of Petroleum and Information Technology, State Bank of Pakistan (SBP) Governor and senior representatives of provinces, Gilgit-Baltistan and AJK.
The subsidy program was introduced after fuel prices increased following the closure of the Strait of Hormuz following the US-Israeli attack on Iran in February this year.
Under the scheme, owners of motorcycles, rickshaws and 800 cc vehicles were given subsidies ranging between Rs 50 and Rs 100 per litre.
Public transport and freight operators received monthly support of between Rs 70,000 and Rs 100,000 to help keep transport prices and costs down, while small farmers received a diesel subsidy of Rs 100 per liter.
Last week, the government reduced the price of petrol by Rs 74.28 per liter and the price of diesel by Rs 67.31 per litre, raising the new rates to Rs 299.50 and Rs 311.47 per litre, respectively.
The reduction followed a peace deal between the United States and Iran and the reopening of the Strait of Hormuz, a key route for global oil transportation.
Fuel prices had hit record levels earlier this year as global energy markets came under pressure. In April, petrol prices rose by Rs 137 per liter to a record Rs 458.40 per litre, while diesel rose from Rs 275.70 per liter to Rs 520.35 per litre.
Gasoline is widely used by motorists, rickshaw drivers and motorcyclists, making price increases particularly burdensome for low- and middle-income households.
Diesel, meanwhile, is widely used in freight transport and agriculture, meaning higher prices may have a broader impact on inflation and supply chains.
