ISLAMABAD: The government has decided to accelerate work on a targeted subsidy framework for petroleum products using a technology-enabled system, as policymakers navigate tight fiscal constraints and seek more efficient delivery of fuel relief.
The decision was discussed at a high-level meeting on the petroleum supply situation chaired by Finance Minister Muhammad Aurangzeb at the Finance Division on Friday. Officials were informed that petroleum product availability across the country remains stable and sufficient, according to an official statement.
During the session, the Ministry of Information Technology and Telecommunication presented proposed digital solutions to support a transparent and targeted subsidy mechanism, designed to ensure accurate identification of beneficiaries and efficient distribution of financial support. The Finance Division also briefed participants that the government’s fiscal capacity remains constrained, with limited room for subsidies largely tied to revenues from the petroleum levy, requiring carefully calibrated relief measures to preserve macroeconomic stability.
Provincial representatives shared policy perspectives on managing fuel demand and pricing pressures. Chief Minister Syed Murad Ali Shah acknowledged federal efforts to maintain uninterrupted fuel supplies while stressing the need for behavioural measures to encourage fuel conservation. Punjab Senior Minister Marriyum Aurangzeb called for the development of multiple policy scenarios to respond to evolving price trends and emphasised that any decline in global oil prices should be promptly passed on to consumers.
Khyber Pakhtunkhwa Finance Minister Muzzammil Aslam commended federal authorities for maintaining supply stability, noting that Pakistan’s fuel management has compared favourably with several regional peers. Meanwhile, Balochistan Finance Minister Mir Shoaib Nosherwani also contributed to deliberations on policy coordination and fiscal planning.
In his concluding remarks, the finance minister underscored the need to treat the current energy price environment as an opportunity to implement structural reforms, highlighting the role of data-driven policymaking in subsidy design and taxation. Participants agreed to fast-track the development of the targeted subsidy mechanism while ensuring continued coordination between federal and provincial governments.
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