The Ministry of Finance has submitted written details to the Senate regarding subsidies provided on petroleum product prices, saying the Prime Minister’s Austerity Fund 2026 was established to provide relief to the public.
In its written reply, the ministry said the government released Rs128 billion to OGRA in March to provide a uniform subsidy on petroleum products to all segments of society.
According to the Finance Ministry, the March subsidy was aimed at giving across-the-board relief on petroleum product prices. The ministry said Rs128 billion was provided to OGRA for the implementation of this subsidy.
Targeted subsidy launched in April
The written response said a targeted subsidy programme was launched in April with the cooperation of provincial governments.
Under this programme, the federal government provided Rs23 billion, while provincial governments initially contributed Rs33 billion.
The ministry said the subsidy is being released by the State Bank on the basis of data provided by provincial governments.
Also Read: Petrol, diesel prices likely to drop in Pakistan
The Finance Ministry said the petroleum subsidy scheme is being monitored by a committee headed by Deputy Prime Minister Ishaq Dar. The committee is overseeing implementation of the relief measures for different segments affected by higher petroleum prices.
Motorcyclists to get petrol relief
Under the assistance programme, motorcycle owners are being given a subsidy of Rs100 per litre on 20 litres of petrol per month. The relief will continue for three months.
The ministry said small farmers are being provided one-time financial assistance of Rs1,500 per acre. Inter-district public transport is also receiving financial assistance for three months under the programme.
The government has also included special assistance for Pakistan Railways to prevent an increase in train fares.
War impact on economy being assessed
The Finance Ministry said the prime minister had assigned the Ministry of Planning the responsibility of assessing the impact of the ongoing Middle East conflict on Pakistan’s economy.
A technical working group formed by the Ministry of Planning is continuously reviewing the situation and assessing possible economic effects.
Petroleum levy collection reaches Rs827.6bn
The ministry also informed the Senate that Rs827.6 billion was collected in petroleum development levy during the first half of the current year.
The written details highlight the government’s efforts to balance petroleum price relief with revenue needs amid external economic pressures.
