Pakistan's PM announces fuel subsidies for transporters to curb inflation
Last updated: April 5, 2026 | 21:35
Shahbaz Sharif. File photo
Shahbaz Sharif chairs a meeting in Islamabad. X photo
Passengers stand on a platform waiting to board the metro at a train station in Lahore. AFP
A metro train glides along an elevated track in Lahore on April 3, 2026. State-run public transport in Pakistan's capital and most populous province will be free for the coming month, officials said on April 3, after the government drastically raised fuel prices due to spiking global energy prices caused by the Iran war. (Photo by Arif ALI / AFP)
Pakistan's Prime Minister Muhammad Shehbaz Sharif speaks during the General Debate of the United Nations General Assembly at UN headquarters in New York City on September 26, 2025. (Photo by TIMOTHY A. CLARY / AFP)
Tariq Butt, Gulf Today Correspondent / NNI News
Prime Minister Shahbaz Sharif said on Sunday that the government was taking, and would continue to take, all possible measures to provide relief to the public during the current challenging situation.
He said the government is providing targeted subsidies on transport and freight vehicles to prevent a surge in fares and food prices amid ongoing economic pressures.
Chairing a review meeting on petroleum reserves and relief measures amid regional tensions, the Prime Minister was briefed on the implementation of subsidies. The prime minister said subsidies are being extended to passenger vehicles to shield commuters from fare hikes.
Shahbaz also urged provinces to release their funds for the fuel subsidies to facilitate motorcyslists, and public and goods transport amid the unprecedented energy crisis in the country.
Shahbaz stated that under a transparent and efficient system, digital transfers of subsidies have been initiated for buses, vans, trucks, and other cargo vehicles. He added that the government is making efforts to ensure timely relief for economically vulnerable segments.
The premier said passenger buses would receive a monthly subsidy of Rs100,000, while mini-buses and wagons would get Rs40,000 to prevent fare increases. To curb rising food and goods prices, trucks were allocated Rs70,000, heavy cargo vehicles Rs80,000 and delivery vans Rs35,000 per month.
“These amounts are being disbursed through digital wallets to ensure transparency,” he added.
Shahbaz noted that the subsidy, initially scheduled for Monday, was released on Saturday following his special directives.
Officials informed that financial assistance is now being provided to public transport and goods transport operators through digital wallets.
Policemen pull a supporter of the Pakistan Tehrik-e-Insaf party, during a protest against rising inflation and petroleum prices, in Karachi on Sunday. Reuters
For the provision of this subsidy, all provincial governments have shared details of trucks, buses, and freight vehicles with the federal government. The government of Balochistan has deposited the allocated amount for the national package, which the Prime Minister termed commendable, while he also thanked Chief Minister Sarfraz Bugti.
He expressed hope that other provinces will also deposit their respective shares for the package at the earliest.
The prime minister said that a public relief package worth Rs129 billion has been provided over the past three weeks, adding that the government cannot leave the public alone in this difficult time. He further stated that immediate relief was provided by reducing the petroleum levy by Rs80 per litre.
Pakistan Railways is providing a subsidy of Rs6 billion, due to which there has been no increase in fares of passenger and freight trains. He added that the quarterly 25 per cent increase in toll tax has also been withdrawn.
The meeting was informed that sufficient fuel reserves are available in the country to meet national requirements.
A report was also presented by the Intelligence Bureau on the implementation of government austerity and simplicity measures.
During the meeting, officials also assured the prime minister that sufficient petroleum reserves are available to meet the country’s needs.
KP GOVT ANNOUNCES RS2,000 FUEL SUBSIDY FOR MOTORCYCLES, RICKSHAW OWNERS
Meanwhile, the Khyber Pakhtunkhwa (KP) government on Sunday, in response to surging petrol prices and an ongoing energy crisis, launched the Ehsaas Fuel Support Programme, under which motorcycle, scooter, and rickshaw owners will be given Rs2,000.
Special Assistant to the Chief Minister on Information and Public Relations, Shafi Jan, said in a statement on X that the initiative had been introduced on the instructions of Chief Minister Sohail Afridi to provide financial relief to transport users.
“A sum of Rs2,000 will be provided to motorcycle, scooter, and rickshaw owners under the Ehsaas Fuel Scheme,” he said, adding that the scheme aims to ease the burden on low-income groups.
