ISLAMABAD: In a key development, Pakistan’s provinces on Monday agreed to share the financial burden of the oil subsidy aimed at protecting consumers from rising fuel prices, while authorities decided to shelve the proposal for smart lockdowns amid ongoing economic challenges.
The decision came during a high-level meeting chaired by President Asif Ali Zardari and attended by Prime Minister Shehbaz Sharif, Deputy Prime Minister Ishaq Dar, and Bilawal Bhutto-Zardari, along with federal ministers and all four provincial chief ministers.
Notably, Khyber Pakhtunkhwa Chief Minister Sohail Afridi also attended the meeting despite political differences between his party, the Pakistan Tehreek-e-Insaf, and the ruling coalition.
According to participants, provinces agreed to contribute to the subsidy in line with their share under the National Finance Commission Award. Earlier, provinces had resisted contributing nearly Rs200 billion sought by the finance ministry to cushion the impact of global oil price hikes.
Meanwhile, the issue of imposing smart lockdowns was discussed but deferred for future consideration. The decision comes as Pakistan faces mounting pressure from the ongoing conflict involving Iran, Israel, and the United States, which has disrupted global energy markets.
Furthermore, President Zardari directed authorities to take all possible measures to ease the burden on citizens, particularly regarding essential goods and services. Officials briefed the meeting on coordinated steps taken by provinces, as well as Gilgit-Baltistan and Azad Jammu and Kashmir, to manage inflation and ensure supply stability.
In addition, the meeting reviewed Pakistan’s fuel reserves and confirmed that sufficient stocks are available, with contingency plans in place. The government also highlighted austerity measures, including reduced expenditures and limiting official vehicle usage, to redirect funds toward public relief.
