Bike riders, small-scale farmers, transport sector: CM announces targeted subsidy package to offset fuel price impact

KARACHI: In response to rising fuel prices, Sindh Chief Minister Syed Murad Ali Shah on Thursday announced a Rs 55 billion targeted subsidy package aimed at cushioning the impact on vulnerable groups.

The relief measures will benefit motorcycle riders, small-scale farmers, and the transport sector, as both the Sindh government and the federal authorities coordinate efforts to respond to the global oil crisis fueled by escalating regional tensions, including the ongoing Iran conflict.

“The Sindh government will have to bear a burden of Rs 55 billion to fund the subsidies it has announced for the people,” he said.

Accompanied by provincial ministers – Nasir Shah, Muhammad Bux Khan Mahar, Mukesh Kumwar chawala and Mayor Karachi Murtaza Wahab, addressing a press conference at the CM House, the chief minister said the evolving geopolitical situation has significantly impacted global oil prices, putting pressure on Pakistan’s economy as a fuel-importing country.

He noted that the issue was discussed in high-level meetings chaired by President Asif Ali Zardari and later by Prime Minister Shehbaz Sharif, where all provinces were taken into confidence.

“We have limited fuel and gas reserves, which are not sufficient to meet domestic needs. While global oil prices have surged, the federal government initially maintained prices, but that blanket subsidy led to increased consumption and fiscal burden,” he said.

The chief minister announced a major relief initiative for motorcycle users, describing them as one of the most affected groups.

“In Sindh alone, there are around 6.7 million registered motorcycles. Each registered bike owner will receive Rs 2,000 per month, equivalent to a subsidy of Rs 100 per litre for 20 litres,” he said.

To facilitate this, the Excise Department has developed a digital application through which owners can register using their CNIC and bank details.

Copyright Business Recorder, 2026