In a coordinated effort to shield the public from a deepening global economic crisis, the governments of Punjab and Sindh on Friday announced relief packages of massive fuel subsidies and free public transport initiatives.
Punjab Chief Minister Maryam Nawaz Sharif unveiled historic measures including a total waiver of fares for all major urban transit systems, such as the Orange Line and Metro Bus, alongside a substantial Rs100 per litre diesel subsidy for the agricultural sector.
Mirroring the federal government’s austerity and relief roadmap, Sindh Chief Minister Murad Ali Shah also mapped out a dedicated provincial programme, confirming a direct monthly cash subsidy of Rs2,000 for millions of registered motorcyclists across Sindh to offset rising petroleum costs.
During a press conference on Friday, Chief Minister Murad confirmed that every registered motorcycle owner in Sindh will receive a monthly subsidy of Rs2,000. To facilitate this, the Excise Department has developed a dedicated mobile application where citizens can enter their CNIC details to claim the amount.
According to the chief minister, there are currently 6.7 million registered motorcycles in the province. “The subsidy will be transferred directly to verified owners between April 15 and 20,” he stated, clarifying that this is a cash transfer and not a Rs100-per-litre discount at petrol pumps.
The Rs2,000 subsidy will amount to Rs100 subsidy on 20 litres petrol a month, as announced by the federal government a day ago, the CM elucidated.
In a move to regularise vehicle documentation, CM Murad also announced that motorcycle ownership transfers are being made free of charge. He urged citizens whose vehicles are not yet in their names to complete the transfer process within the next 15 days to remain eligible for the relief.
Furthermore, the provincial government plans to extend similar relief to bus and truck owners, with the relevant data being shared with the federal government for implementation, he stated.
The development comes a day after the centre sharply increased petroleum prices, raising petrol to Rs458.41 per litre and high-speed diesel (HSD) to Rs520.35 per litre.
The announcement was made at a press conference by Petroleum Minister Ali Pervaiz Malik alongside Finance Minister Muhammad Aurangzeb.
The latest hike marked a significant jump from the previous notified prices earlier in March, when petrol was priced at Rs321.17 per litre and HSD at Rs335.86 per litre, indicating an increase of over Rs137.24 per litre in petrol, and Rs184.49 per litre in HSD.
Aurangzeb also announced a targeted relief measure, saying motorcycle users would receive subsidised petrol at Rs100 less per litre for up to 20 litres.
Addressing today’s presser, CM Murad said the evolving geopolitical situation has significantly impacted global oil prices, putting pressure on Pakistan’s economy as a fuel-importing country. He noted that the issue was discussed in high-level meetings chaired by President Asif Ali Zardari and later by Prime Minister Shehbaz Sharif, where all provinces were taken into confidence.
“We have limited fuel and gas reserves, which are not sufficient to meet domestic needs. While global oil prices have surged, the federal government initially maintained prices, but that blanket subsidy led to increased consumption and fiscal burden,” he said.
Murad said that, on the recommendation of the International Monetary Fund, the government has decided to move away from blanket subsidies to a targeted system focusing on the poorest segments. “A one-month targeted relief regime is being finalised, with four key components jointly implemented by the federal and provincial governments,” he added.
