Govt to discontinue fuel subsidy with PM’s approval, says DPM Dar

Pakistan government has decided to discontinue its fuel subsidy programme for motorcyclists, small farmers, public transport operators and goods transport vehicles after a decline in global fuel prices enabled relief to be passed on directly to consumers.

The decision was taken at the seventh meeting of the National Steering Committee on Fuel Subsidy, chaired by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar, according to an official statement issued on Monday.

The committee reviewed the implementation of the fuel subsidy scheme across all provinces, as well as Gilgit-Baltistan (GB) and Azad Jammu and Kashmir (AJK).

During the meeting, the committee noted that international fuel prices had fallen sharply and that the resulting benefit had already been transferred to consumers through lower domestic fuel prices.

In view of the changing market conditions, the committee agreed to discontinue the subsidy programme with the approval of Prime Minister Shehbaz Sharif.

Dar appreciated the committee’s efforts, highlighting sustained coordination among the federation, provinces, GB and AJK during the rollout of the initiative.

He directed the relevant authorities to document lessons learned from the exercise, address gaps in data collection and delivery mechanisms, and strengthen future welfare programmes aimed at improving public service delivery.

The meeting was attended by Special Assistant to the Prime Minister Tariq Bajwa, the federal secretaries of petroleum and information technology, the governor of the State Bank of Pakistan, and senior representatives from all provinces, GB and AJK.