DPM Dar hails 'whole of govt' approach as he reviews govt fuel subsidy scheme
Deputy Prime Minister and Foreign Minister Ishaq Dar on Tuesday appreciated the success of the Prime Minister’s Fuel Relief Scheme, saying that it reflected a “whole of government” approach.
The relief scheme for owners of motorcycles, rickshaws and vehicles of up to 800cc was rolled out across the country on Sept 17. PM Shehbaz Sharif had announced the subsidies to ease the public’s burden amid rising fuel prices due to the Middle East situation.
On Tuesday, DPM Dar chaired a meeting of the National Steering Committee on Fuel Subsidy to review the implementation of the scheme, his office said.
The deputy premier noted that the information, IT and petroleum ministries, as well as the Oil and Gas Regulatory Authority (Ogra), the State Bank of Pakistan (SBP) and all provinces, had made “concerted” efforts for the scheme.
“Dar stressed the need for continued coordination to facilitate beneficiaries and ensure smooth service delivery across the country,” the statement said.
It noted that to date, around 7.60 million registrations have been successfully made, and the token redemption process has entered the second week. Moreover, 7.71m tokens have been redeemed.
The meeting was attended by IT Minister Shaza Fatima Khawaja, Information Minister Attaullah Tarar, Special Assistant to PM (SAPM) on DPM Office Tariq Bajwa, the federal and provincial secretaries, and officials from SBP, Ogra, National Information Technology Board, and Pakistan Digital Authority.
Under the relief scheme, owners of two- and three-wheeled vehicles were to receive a subsidy of Rs100 per litre on a monthly quota of 20 litres, while those owning vehicles of up to 800cc were to receive the same subsidy on a monthly quota of 30 litres.
On Sept 17, the government also reintroduced austerity measures in an effort to conserve fuel, setting 9pm as the time for closing markets and reducing fuel provision for official vehicles by 50pc for a period of three months.
Today, DPM Dar also chaired a meeting of the Committee for Monitoring and Implementation of Conservation and Additional Austerity Measures.
“The committee reviewed progress on the austerity and conservation measures,” the Dar-led Foreign Office (FO) said.
Discussions focused on ensuring fiscal discipline and the prudent use of public resources, it added.
The deputy premier directed all ministries and divisions concerned to “fully and effectively implement the decisions taken at previous meetings”.
The meeting was attended by Khawaja, Minister for Climate Change Dr Musadik Malik, SAPM on Foreign Affairs and the cabinet secretary, as well as officials from the interior, finance, foreign affairs, commerce, law, and climate change ministries.
Fuel prices amid Mideast conflict
Renewed hostilities in the Middle East, which have resulted in the disruption of major oil supply routes, have caused fuel prices to rise over the past two months.
In addition to the crisis in the Strait of Hormuz due to the US-Iran war, trade via Bab al-Mandab — which has become a vital route for Saudi oil exports in recent months — is also facing a rising threat from Houthi rebels.
The International Energy Agency (IEA) has said that global oil supply and demand will fall further than previously thought this year, as a lack of progress in ending the Iran war delays the return of normal Middle East flows into 2027 and sends fuel prices soaring.
In July, the government announced that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices.
Prior to this, the government had been announcing weekly revisions to fuel prices since early March, alongside measures for the conservation of fuel. The federal government had also announced targeted relief measures in April to provide subsidised fuel.
