The Federal Government of Pakistan has announced an increase in the prices of petroleum products following record highs in international markets.
Ali Pervaiz Malik made the announcement during a news conference in Islamabad, alongside Muhammad Aurangzeb. He explained that the ongoing Middle East conflict has caused oil prices to soar globally, affecting countries worldwide.
To mitigate the impact on citizens, the government plans to shift from blanket subsidies to targeted support for the most vulnerable groups. Petrol prices will rise to Rs 458.40 per liter and diesel to Rs 520.35 per liter.
The government has saved Rs 129 billion through austerity measures to act as a buffer against global price surges, according to Ali Pervaiz Malik.
Targeted Subsidy Program
Finance Minister Muhammad Aurangzeb outlined a Targeted Subsidy Program to protect the poor and middle class:
- Motorcyclists and two-wheelers will receive Rs 100 per liter, capped at 20 liters per month for three months.
- Small farmers will get Rs 1,500 per acre as a one-time subsidy for harvesting.
- Inter-city public transport and freight vehicles will receive Rs 100 per liter subsidy for one month.
- Trucks: Rs 70,000/month; heavy-duty vehicles: Rs 80,000/month.
- Public service buses: Rs 100,000 subsidy per vehicle.
- Subsidies for Pakistan Railways to help reduce fares for lower-class passengers.
The Finance Minister also stated that market timing reforms are under consideration and will be implemented after consultations with provincial governments.
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