Minister of State for Finance and Revenue Bilal Azhar Kayani on Sunday said the government had maintained an uninterrupted fuel supply chain across the country since the onset of the regional crisis, while introducing targeted subsidies to shield vulnerable segments from its economic impact.
Addressing a news conference along with Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja, he said the evolving regional situation had affected economies worldwide, including Pakistan, necessitating timely and coordinated policy measures under the leadership of Prime Minister Shehbaz Sharif.
“The ongoing war in the region has had an impact on all economies of the world. Pakistan has also been affected,” Kayani said, adding that both developed and developing countries were facing similar challenges.
He said Pakistan, under the leadership of Prime Minister Shehbaz Sharif, Chief of Army Staff and Chief of Defence Forces Field Marshal Syed Asim Munir, and Deputy Prime Minister Ishaq Dar, had been making all-out efforts since the outset of the crisis to protect citizens from economic shocks.
Kayani said ensuring uninterrupted availability of petroleum products remained the government’s foremost priority. “From day one, the government focused on maintaining adequate reserves and arranging alternative supply routes to avoid any shortages,” he added.
He said the prime minister had constituted a high-level committee at the outset of the crisis, which met daily to monitor the situation and take prompt decisions. As part of relief measures, he said, the government absorbed a significant portion of the global price hike for three consecutive weeks to prevent its transmission to consumers.
“There was going to be a substantial increase in fuel prices, but the prime minister ensured that this burden was not passed on to the public. For three weeks, the government held back the increase, spending Rs 129 billion,” he added.
The minister said the government, in consultation with provinces and coalition partners, including the Pakistan Peoples Party and the Muttahida Qaumi Movement-Pakistan, had adopted a collective strategy to mitigate the impact of rising fuel costs.
Highlighting targeted relief measures, Kayani said the government had reduced the petroleum levy by Rs80 per litre and introduced subsidies for key segments. “Motorcycle users are being provided a subsidy of Rs 100 per litre, while Rs1,500 per acre support to farmers,” he said, adding that registration for these schemes had already begun in the provinces.
He said further relief measures were being extended to public transport users, goods transporters and intercity commuters in collaboration with provincial governments. “The government is also working on additional subsidies to ease the burden on middle and lower-income groups,” he added.
Referring to urban transport facilitation, he said services such as metro buses had also been made free to support commuters. Kayani said the government had financed these measures through prudent fiscal management, including expenditure rationalization in the last quarter of the current financial year and reallocation of resources. He reaffirmed the government’s commitment to continue taking necessary steps, in coordination with provincial governments, to safeguard citizens from the economic fallout of the regional situation. “The government, under the leadership of the prime minister, will continue to take all possible measures to protect the people of Pakistan,” he remarked.