Islamabad, March 27, 2026 – The federal government is moving to introduce a targeted subsidy on petroleum products through a technology-driven mechanism, as it navigates limited fiscal space and rising energy challenges.
The development was discussed during a high-level meeting chaired by Finance Minister Muhammad Aurangzeb at the Finance Division. The session reviewed the country’s fuel supply situation and explored policy options to ensure stability while providing relief to consumers.
Officials from the Petroleum Division informed participants that fuel availability across Pakistan remains stable and adequate, despite global market volatility. Meanwhile, the Ministry of Information Technology and Telecommunication presented proposals for a technology-based subsidy system aimed at improving transparency, efficiency, and targeted delivery.
Provincial leaders also shared their perspectives. Syed Murad Ali Shah appreciated federal efforts to maintain uninterrupted fuel supply while stressing the need for promoting fuel conservation. Punjab Senior Minister Marriyum Aurangzeb called for multiple policy scenarios to tackle fluctuating petroleum prices and emphasized passing on any global price relief to consumers.
Similarly, Muzzammil Aslam praised the government’s handling of the oil supply situation, noting that Pakistan has performed better than several regional countries. Mir Shoaib Nosherwani also contributed to the discussion on fiscal and energy challenges.
The Finance Division highlighted that fiscal space remains constrained, largely limited to petroleum levy revenues, making carefully calibrated relief measures essential for maintaining macroeconomic stability.
In his remarks, Aurangzeb emphasized that current challenges should be treated as an opportunity for structural reforms, advocating data-driven policymaking in taxation and subsidy design. He also stressed responsible consumption and fiscal prudence to maximize public relief.
Participants agreed to fast-track the development of a targeted subsidy framework while ensuring close coordination between federal and provincial governments.