ISLAMABAD: Pakistan has approved a one-month extension for the fuel subsidy previously granted to motorcyclists, public transport operators, and goods carriers across the country, with Prime Minister Shehbaz Sharif endorsing the decision.
According to an official statement released by the Prime Minister’s Office (PMO) on Thursday, the decision was taken to maintain financial relief for economically vulnerable groups during ongoing regional uncertainties.
اسلام آباد: 30 اپریل 2026.
وزیرِ اعظم محمد شہباز شریف نے حالیہ صورتحال کے پیش نظر معاشی طور پر کمزور طبقے کو ریلیف کی فراہمی کے تسلسل کو قائم رکھنے کا فیصلہ کیا ہے.
وزیرِ اعظم نے موٹر سائیکل سواروں، پبلک و گڈز ٹرانسپورٹ کیلئے گزشتہ ماہ دی جانے والی سبسڈی میں ایک ماہ کی مزید…
— Prime Minister’s Office (@PakPMO) April 30, 2026
The prime minister directed transport operators not to raise passenger fares or freight charges as a condition of the extended support. He also ordered strict monitoring mechanisms to ensure the subsidies reach their intended recipients.
“Providing relief to the common citizen remains the government’s highest priority,” PM Shehbaz said in the statement. “The people will not be abandoned under any circumstances.”
He expressed hope that the regional situation would improve soon, leading to more stable fuel prices in the near future.
Background of the subsidy package
The targeted relief measures were originally introduced earlier this month to protect bikers, farmers, and transporters from global oil price shocks triggered by the ongoing US-Israel military conflict with Iran.
Key components of the package included:
- Rs100 per litre subsidy for motorcycle users, capped at 20 litres per month for three months
- Rs70,000 per month direct support for trucks carrying 80-85 percent of food items
- Rs80,000 per month for large transport vehicles
- Rs100,000 per month for inter-city public service vehicles to keep fares stable
Provincial contribution
Provincial governments are leading the distribution of subsidised fuel quotas. All four provinces have collectively pooled approximately Rs200 billion for a three-month period, based on their respective shares under the National Finance Commission (NFC) award.
The provincial breakdown includes:
- Punjab: Rs100 billion
- Sindh: Rs51-52 billion
- Khyber Pakhtunkhwa: Rs15 billion
- Balochistan: Rs8-9 billion
Rising oil bill
A day before the subsidy extension announcement, the Prime Minister chaired a federal cabinet meeting where he disclosed that Pakistan’s weekly oil import bill had surged to US$ 800 million, up from approximately US$ 300 million prior to the outbreak of the regional conflict.
He also confirmed that consultations with provincial governments regarding the subsidy extension were already underway at that time.
