Pakistan Govt Plans Rs23 Billion Subsidy for Low-Income Motorcycle and Rickshaw Owners

Islamabad: The federal government of Pakistan has decided to provide Rs23 billion in subsidies for low-income citizens using savings generated under its austerity policy.

During a meeting of the Senate Standing Committee on Petroleum, the Secretary Petroleum Pakistan informed members that the government plans to distribute the subsidy to owners of motorcycles and rickshaws.

According to officials, around 30 million two-wheelers and three-wheelers are expected to benefit from the subsidy. The financial assistance will be distributed to eligible individuals based on data from the Benazir Income Support Programme (BISP).

Authorities said the Oil and Gas Regulatory Authority (OGRA) and the Petroleum Division have started working on the subsidy mechanism. The funds will come from savings achieved through the government’s austerity measures.

Committee members questioned how the Rs23 billion would be generated and emphasized that any financial benefit should reach the public rather than oil companies. Officials responded that various cost-saving steps were taken under the directives of Shehbaz Sharif, the Prime Minister.

During the meeting, the Petroleum Secretary also briefed members about fuel supply concerns amid rising tensions in the Middle East. He said global diesel prices had increased from $88 to $187 per barrel, while petrol had reached $130 per barrel.

Officials noted that around 70 percent of Pakistan’s petroleum products are imported from the Middle East, and disruptions in shipping routes have affected supply. Authorities are attempting to maximize the use of existing reserves while exploring alternative sources, including potential oil imports from Russia.

The Petroleum Secretary added that Pakistan currently has 11 days of crude oil reserves, 21 days of diesel, and 27 days of petrol available. Meanwhile, LPG reserves are sufficient for about nine days, and jet fuel stocks for 14 days.

He further stated that fuel prices may now be determined on a weekly basis to better manage fluctuations in the global market.