ISLAMABAD: The government is moving towards finalising a targeted subsidy framework for petroleum products, backed by technological solutions and strengthened coordination between federal and provincial governments.
The development came during a high-level consultative meeting chaired by Federal Minister for Finance and Revenue Muhammad Aurangzeb, held in line with directives from the country’s leadership.
A detailed briefing by the Petroleum Division confirmed that fuel supplies across the country remain stable and sufficient. Officials expressed satisfaction over the current availability of petroleum products.
The Ministry of Information Technology and Telecommunication presented a comprehensive plan for a transparent and efficient subsidy mechanism. Central to the proposal is the deployment of 24,000 mobile phones at petrol pumps nationwide to run a dedicated subsidy application.
Under the plan, these devices will be installed across 12,000 petrol pumps, with two nozzles at each location designated for subsidised fuel. The mobile application—currently in its final testing phase—will issue digital vouchers, enabling eligible consumers to purchase fuel within defined quotas.
Initially, the scheme will provide up to 20 litres of subsidised petrol per month to motorcycle owners. Expansion to small vehicles up to 800cc is also under consideration.
The government has invited expressions of interest from local mobile manufacturers, with only Pakistan Telecommunication Authority-approved devices eligible. The National IT Board will determine pricing, while oil marketing companies will manage procurement and distribution.
Provincial representatives also shared their perspectives. Sindh Chief Minister Murad Ali Shah appreciated federal efforts to ensure uninterrupted fuel supply and stressed the need for behavioural changes to promote conservation.
Punjab Senior Minister Marriyum Aurangzeb emphasized the importance of flexible policy responses to global oil price fluctuations and called for passing on relief to consumers when international prices decline.
Khyber Pakhtunkhwa Finance Minister Muzzammil Aslam praised the federal government’s management of petroleum supplies, noting Pakistan’s comparatively better performance in the region. Balochistan Finance Minister Mir Shoaib Nosherwani also contributed to the discussion.
The Finance Division highlighted limited fiscal space, largely dependent on petroleum levy revenues, underscoring the need for carefully calibrated relief measures to maintain macroeconomic stability.
Concluding the meeting, the finance minister stressed that the current situation should be seen as an opportunity for structural reforms. He called for data-driven policymaking in taxation and subsidy design to enhance transparency, efficiency, and targeted relief, while promoting responsible fuel consumption.
Participants agreed to expedite the finalisation of the subsidy framework, ensuring coordinated implementation across all provinces. The meeting was attended by senior federal and provincial officials, including Federal Minister for Petroleum Ali Pervaiz Malik and Federal Minister for IT & Telecommunication Shaza Fatima Khawaja, along with key stakeholders such as the chairman of NADRA.
Story by Tahir Amin
