The federal government is considering fuel relief of up to Rs. 40 per litre for deserving citizens. The proposal follows discussions between Prime Minister Shehbaz Sharif and Jamaat-e-Islami (JI) chief Hafiz Naeem ur Rehman.
According to sources, the government has agreed in principle to explore expanding its targeted petroleum subsidy. The plan could include up to five million additional beneficiaries.
However, the proposal is not yet final. Both sides must resolve key details before authorities can implement the expanded scheme.
Targeted Relief Instead of Blanket Subsidies
The main disagreement concerns how the government should provide fuel relief. Jamaat-e-Islami has pushed for broader reductions, while the government favours targeted assistance.
Officials argue that a blanket subsidy could conflict with Pakistan’s commitments under the International Monetary Fund (IMF) programme. They also say it would benefit wealthy consumers alongside low-income households.
Instead, the government is considering adding eligible consumers to the existing subsidy scheme. It may also expand coverage to include older models of motorcycles and other vehicles.
If approved, the programme could help households manage rising transportation costs.
Jamaat-e-Islami Pushes to Include Diesel
JI has also demanded that diesel receive subsidy support. The party argues that farmers and other essential sectors depend heavily on diesel, making its price a major factor in production and transportation costs.
In response, government representatives indicated that diesel could be included in the targeted relief programme to an appropriate extent.
Sources also said the government had reduced the price of locally produced diesel by Rs. 32 per litre after separating it from international price movements.
Final Decision Awaits Further Talks
Technical committees representing both sides will continue discussions to develop the subsidy framework. They must determine eligibility requirements, the number of beneficiaries and the final relief amount.
Meanwhile, Hafiz Naeem previously said the prime minister had requested another seven to ten days to address JI’s demand to abolish the petroleum levy.
For now, the proposed Rs. 30 to Rs. 40 per litre reduction remains under consideration. Eligible citizens will have to wait for an official announcement confirming the scheme’s scope and implementation date.
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