Supreme Court of Pakistan

FCCP suspends Sindh HC order on petroleum subsidy case

Energy

FCCP suspends Sindh High Court order directing subsidy payments to petroleum company, issues notices and seeks complete case record

The Federal Constitutional Court of Pakistan on Thursday suspended a ruling by the Sindh High Court that had directed the payment of subsidies to a private petroleum firm, while admitting the federal government’s appeal for a detailed hearing.

A two-member bench, headed by Chief Justice Aminuddin Khan and Justice Ali Baqar Najafi, heard the case and issued notices to all parties involved. The court also ordered the submission of complete records from the Sindh High Court in the related proceedings.

During the hearing, the bench was informed that the Sindh High Court had earlier directed the government to release billions of rupees in subsidies to Go Petroleum within a week. In a separate but related matter, the court had also restrained the Federal Investigation Agency from taking action linked to the dispute.

According to the federal government, subsidies were initially approved for petroleum companies to offset price differentials during a nationwide fuel crisis. However, Go Petroleum later filed a claim seeking approximately 14 billion rupees in subsidy payments.

The government subsequently directed the Federal Investigation Agency to verify sales data and assess the legitimacy of the claims, prompting parallel legal proceedings.

After hearing arguments, the constitutional court suspended implementation of the Sindh High Court’s order and adjourned the case indefinitely.