The federal government has decided to provide Rs23 billion to motorcyclists and rickshaw owners in subsidies from savings generated under its austerity policy.
During a meeting of the Senate Standing Committee on Petroleum, the Petroleum Secretary said the government has decided to allocate Rs23 billion in subsidies from funds saved through austerity measures.
The subsidy will be provided to motorcycle and rickshaw owners, with around 30 million two-wheelers and three-wheelers expected to benefit.
Officials said the subsidy will be distributed to eligible beneficiaries based on data from the Benazir Income Support Program (BISP). The Oil and Gas Regulatory Authority (OGRA) and the Petroleum Division have begun working on the subsidy mechanism. They added that any savings generated under the austerity policy will be redirected toward the subsidy, similar to the relief measures provided during the COVID-19 pandemic.
Committee members questioned the source of the Rs23 billion and asked what measures had been taken to generate the savings, urging that the benefit of the rupee be passed on to the public rather than oil companies.
Officials responded that the savings were achieved through various cost-cutting steps taken on the prime minister’s instructions.
During the meeting, the Petroleum Secretary also briefed the committee on fuel supply after rising regional tensions. He said global diesel prices have surged from $88 to $187 per barrel, while petrol prices have reached $130 per barrel.
He added that petroleum supply has been affected due to tensions in the Middle East, from where Pakistan imports around 70% of its petroleum products.
