‘Govt is providing subsidy despite sharp rise in fuel prices’

ISLAMABAD: Finance Minister Muhammad Aurangzeb has said that the government is providing subsidy to the masses despite a rapid rise in the fuel prices globally.

He was speaking at the Senate session presided over by Chairman Yousaf Raza Gilani on Wednesday.

The minister said that the government cut back on the Public Sector Development Programme (PSDP) to provide subsidy to the masses in the wake of global rise in fuel prices.

READ MORE: 5th, 6th tranches of fuel subsidy scheme to be disbursed this month

He was responding to a calling attention notice moved by Mohsin Aziz from Pakistan Tehreek-e-Insaf (PTI) regarding the recent increase in prices of petroleum products and its impact on costs of industrial productions and national economy.

The government has disbursed 5.4 billion rupees, so far, under a targeted fuel subsidy programme, besides providing Rs4.61 billion support to small farmers, Aurangzeb said.

The government initially offered a general subsidy but later shifted to a targeted programme “so that relief could reach motorcycle owners, public transport users, transport operators and small farmers,” he said.

Around 800,000 motorcycle owners benefited from the scheme, while financial assistance ranging from Rs 35,000 to Rs 100,000 was provided to passenger and goods transport vehicles, said the minister.

In addition, Rs 3.5 billion were distributed among more than 105,000 eligible vehicle owners in the first phase, while another Rs1.9 billion had been disbursed among over 65,000 beneficiaries in the second phase through a transparent verification system based on vehicle registration data, he added.

Overall, the subsidy of Rs 129 billion has been provided to reduce the burden of rising fuel cost on the public, said the lawmaker. The government is trying to maintain a balance between the prices of petrol and diesel, the minister said.

The global economy, he said, is under strain due to the ongoing conflict in the Middle East.

In the current situation, “tough” decisions are necessary for economic stability, the finance minister said.

He confirmed that the Economic Survey for the outgoing financial year 2025-26 would be presented today (Thursday).

Meanwhile, the chairman Senate stated in the House that the Senate Secretariat surrendered Rs 1.436 billion to the national exchequer through a comprehensive austerity and expenditure rationalisation programme.

This represents approximately 15.9 percent of the Senate’s budget and exceeds the savings target prescribed by the Finance Division by nearly 500 percent, he said.

“These savings have been achieved through strict financial discipline, including the suspension of non-essential expenditures, reduction in operational costs, restrictions on official transport and foreign visits, and greater reliance on digital platforms,” Gilani said.

Copyright Business Recorder, 2026