ISLAMABAD: The government is set to finalise a targeted subsidy framework for petroleum products, leveraging technological solutions and ensuring continued coordination between federal and provincial governments.
Federal Minister for Finance and Revenue Muhammad Aurangzeb chaired a high-level consultative meeting on the petroleum products situation on Friday, in line with the directions of the President and the Prime Minister of Pakistan.
The meeting commenced with a detailed presentation by the Petroleum Division on the current status of petroleum products’ availability in the country. It was noted with satisfaction that the fuel supply situation remains stable and adequate in the country.
The Ministry of Information Technology and Telecommunication (MoITT) also gave a comprehensive presentation on proposed technological solutions to facilitate a targeted subsidy mechanism for petroleum products, with a focus on transparency and efficient delivery.
The government plans to buy 24,000 mobile phones to run a new petrol subsidy application aimed at ensuring fair and controlled distribution of subsidized fuel. The devices will be installed at petrol pumps nationwide, allowing eligible consumers to access fuel within set quotas. MoITT has invited expressions of interest (EOI) from local mobile phone manufacturers and assemblers. Only Pakistan Telecommunication Authority (PTA)-approved devices will be considered.
According to officials, the National IT Board will determine the pricing of the phones, while oil marketing companies will handle their purchase and distribution.
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A total of 24,000 mobile phones will be deployed across 12,000 petrol pumps, with two nozzles at each pump designated for the subsidy program. The mobile application, developed by the IT Ministry, is in its final stages of testing and will issue digital vouchers to eligible users.
Initially, the program plans to provide up to 20 litres of subsidised petrol per month to motorcycle owners, with the possibility of extending it to cars up to 800cc still under review.
The provincial leadership shared their views on the prevailing situation and policy options. Chief Minister Sindh, Syed Murad Ali Shah, appreciated the efforts of the federal government in maintaining uninterrupted fuel availability, while emphasizing the importance of behavioural measures to promote fuel conservation.
Punjab Senior Minister Marriyum Aurangzeb, representing the Government of Punjab, emphasized the need to develop multiple policy scenarios in response to the evolving petroleum price situation. She stressed that any reduction in international petroleum prices should be effectively passed on to consumers and highlighted the importance of incorporating behavioural aspects into crisis management to ensure more sustainable consumption patterns.
Khyber Pakhtunkhwa Finance Minister Muzzammil Aslam lauded the efforts of Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and Federal Minister for Petroleum, Ali Pervaiz Malik, for effectively managing the oil supply situation. He noted that Pakistan’s management of petroleum supplies has remained comparatively better than that of several countries in the region.
Balochistan Minister for Finance and Mines & Mineral Development, Mir Shoaib Nosherwani, also shared his views during the meeting.
The Finance Division briefed the participants on the fiscal situation and noted that limited fiscal space is available, primarily confined to revenues from the petroleum levy. It was emphasized that any relief measures would need to be carefully calibrated to maintain macroeconomic stability.
Finance Minister underscored that the current situation should be treated as an opportunity to undertake structural reforms rather than a constraint. He emphasized the importance of adopting data-driven decision-making, particularly in the areas of taxation and subsidy design, to ensure transparency, efficiency, and better targeting of relief.
The Finance Minister also highlighted the need to promote responsible consumption behaviour and ensure that policy responses remain fiscally prudent while maximizing relief for the public.
The participants agreed to expedite efforts to finalize a targeted subsidy framework using technological solutions, while ensuring continued coordination between the federal and provincial governments.
The meeting was attended by Chief Minister Sindh, Syed Murad Ali Shah; Punjab Senior Minister Marriyum Aurangzeb, representing the Government of Punjab; Khyber Pakhtunkhwa Finance Minister Muzzammil Aslam; Balochistan Minister for Finance and Mines & Mineral Development, Mir Shoaib Nosherwani; Chief Secretaries of all four provinces; Federal Minister for Petroleum, Ali Pervaiz Malik; Federal Minister for Information Technology and Telecommunication, Shaza Fatima Khawaja; Federal Secretaries of Finance, Petroleum, and Information Technology & Telecommunication; as well as senior officials, including the Chairman NADRA.
Copyright Business Recorder, 2026
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