Centre, Provinces move to fast – track targeted fuel subsidy plan

ISLAMABAD: The federal and provincial governments have agreed to expedite efforts to finalize a targeted subsidy framework using technological solutions, while ensuring continued coordination among all stakeholders.
The issue was discussed in detail at a high-level meeting chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, at the Finance Division, in line with directives from the President and the Prime Minister. The meeting reviewed the overall petroleum products situation in the country.
The session began with a comprehensive presentation by the Petroleum Division on the availability of petroleum products. Participants expressed satisfaction that fuel supplies remain stable and adequate nationwide.
The Ministry of Information Technology and Telecommunication also presented proposed technological solutions aimed at enabling a targeted subsidy mechanism for petroleum products, focusing on transparency and efficient delivery.
Provincial representatives shared their perspectives on the current situation and policy options. Sindh Chief Minister Syed Murad Ali Shah appreciated the federal government’s efforts in maintaining uninterrupted fuel supplies and emphasized the need for behavioral measures to promote fuel conservation.
Punjab Senior Minister Marriyum Aurangzeb highlighted the importance of developing multiple policy scenarios in response to evolving petroleum price trends. She stressed that any reduction in international prices should be passed on to consumers and underscored the role of behavioral interventions in promoting sustainable consumption patterns.
Khyber Pakhtunkhwa Finance Minister Muzzammil Aslam commended the efforts of the federal government, particularly Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik, for effectively managing the oil supply situation. He noted that Pakistan’s performance in maintaining petroleum supplies has been comparatively better than several countries in the region.
Balochistan Minister for Finance and Mines & Mineral Development, Mir Shoaib Nosherwani, also shared his views during the meeting.
The Finance Division briefed participants on the fiscal situation, noting that limited fiscal space is available, largely restricted to revenues generated through the petroleum levy. It was emphasized that any relief measures would need to be carefully calibrated to preserve macroeconomic stability.
In his concluding remarks, the finance minister underscored that the current situation should be viewed as an opportunity to undertake structural reforms. He emphasized the need for data-driven decision-making, particularly in taxation and subsidy design, to ensure transparency, efficiency, and better targeting of relief.
He also stressed the importance of promoting responsible consumption behavior while ensuring that policy responses remain fiscally prudent and maximize relief for the public.
Participants agreed to accelerate efforts to finalize a targeted subsidy framework through technological solutions, while maintaining close coordination between federal and provincial governments.
The meeting was attended by Sindh Chief Minister Syed Murad Ali Shah; Punjab Senior Minister Marriyum Aurangzeb; Khyber Pakhtunkhwa Finance Minister Muzzammil Aslam; Balochistan Minister Mir Shoaib Nosherwani; chief secretaries of all four provinces; Federal Minister for Petroleum Ali Pervaiz Malik; Federal Minister for IT and Telecommunication Shaza Fatima Khawaja; federal secretaries of Finance, Petroleum, and IT; and senior officials, including the Chairman NADRA.