ISLAMABAD – Pakistani government decided to abolish nationwide fuel subsidy program following a decline in global fuel prices and approval from the Prime Minister.
The decision was finalized during seventh meeting of the National Steering Committee, chaired by Deputy Prime Minister Ishaq Dar, where officials reviewed subsidy measures previously targeted at motorcycle riders, small-scale farmers, public transport operators, and goods transport services.
The fuel subsidy scheme will be withdrawn across all provinces, including Gilgit-Baltistan and Azad Kashmir, marking the end of a relief initiative that had been designed to cushion vulnerable sectors from high fuel costs.
Government officials argued that falling international oil prices have reduced the need for continued subsidy support. However, the move is expected to trigger debate over its impact on transport operators, farmers, and low-income commuters who had benefited from the program.
The meeting highlighted concerns over weaknesses in public service delivery. On the instructions of Ishaq Dar, authorities have been directed to address flaws in data management and distribution systems to improve efficiency and ensure better implementation of future public welfare initiatives.
The decision represents one of the government’s most significant fuel-policy changes in recent months and signals a broader shift toward reducing subsidy expenditures as market conditions evolve. Analysts will now be watching closely to see whether lower global fuel prices are sufficient to offset the loss of direct government support for affected groups.
