Business Recorder
In a coordinated effort to shield the public from a deepening global economic crisis, the governments of Punjab and Sindh on Friday announced relief packages of massive fuel subsidies and free public transport initiatives. Punjab Chief Minister Maryam Nawaz Sharif unveiled historic measures including a total waiver of fares for all major urban transit systems, such as the Orange Line and Metro Bus, alongside a substantial Rs100 per litre diesel subsidy for the agricultural sector. Mirroring the federal government’s austerity and relief roadmap, Sindh Chief Minister Murad Ali Shah also mapped out a dedicated provincial programme, confirming a direct monthly cash subsidy of Rs2,000 for millions of registered motorcyclists across Sindh to offset rising petroleum costs. During a press conference on Friday, Chief Minister Murad confirmed that every registered motorcycle owner in Sindh will receive a monthly subsidy of Rs2,000. To facilitate this, the Excise Department has developed a dedicated mobile application where citizens can enter their CNIC details to claim the amount. According to the chief minister, there are currently 6.7 million registered motorcycles in the province. “The subsidy will be transferred directly to verified owners between April 15 and 20,” he stated, clarifying that this is a cash transfer and not a Rs100-per-litre discount at petrol pumps. The Rs2,000 subsidy will amount to Rs100 subsidy on 20 litres petrol a month, as announced by the federal government a day ago, the CM elucidated. In a move to regularise vehicle documentation, CM Murad also announced that motorcycle ownership transfers are being made free of charge. He urged citizens whose vehicles are not yet in their names to complete the transfer process within the next 15 days to remain eligible for the relief. Furthermore, the provincial government plans to extend similar relief to bus and truck owners, with the relevant data being shared with the federal government for implementation, he stated. The development comes a day after the centre sharply increased petroleum prices, raising petrol to Rs458.41 per litre and high-speed diesel (HSD) to Rs520.35 per litre. The announcement was made at a press conference by Petroleum Minister Ali Pervaiz Malik alongside Finance Minister Muhammad Aurangzeb. The latest hike marked a significant jump from the previous notified prices earlier in March, when petrol was priced at Rs321.17 per litre and HSD at Rs335.86 per litre, indicating an increase of over Rs137.24 per litre in petrol, and Rs184.49 per litre in HSD. Aurangzeb also announced a targeted relief measure, saying motorcycle users would receive subsidised petrol at Rs100 less per litre for up to 20 litres. Addressing today’s presser, CM Murad said the evolving geopolitical situation has significantly impacted global oil prices, putting pressure on Pakistan’s economy as a fuel-importing country. He noted that the issue was discussed in high-level meetings chaired by President Asif Ali Zardari and later by Prime Minister Shehbaz Sharif, where all provinces were taken into confidence. “We have limited fuel and gas reserves, which are not sufficient to meet domestic needs. While global oil prices have surged, the federal government initially maintained prices, but that blanket subsidy led to increased consumption and fiscal burden,” he said. Murad said that, on the recommendation of the International Monetary Fund, the government has decided to move away from blanket subsidies to a targeted system focusing on the poorest segments. “A one-month targeted relief regime is being finalised, with four key components jointly implemented by the federal and provincial governments,” he added. Support for small farmers: Highlighting support for the agriculture sector, Murad said that around 336,000 small growers owning between 1 to 25 acres will receive Rs1,500 per acre. “This subsidy is aimed at supporting diesel costs for wheat threshing. Since verified data is already available, payments will begin from next week,” he said, adding that previous subsidy programmes for fertilisers had been implemented successfully without complaints. Public transport relief: To prevent an increase in transport fares, the government has introduced a subsidy package for transporters. Under the scheme: • Passenger buses will receive Rs100,000 per vehicle • Two-axle goods trucks will receive Rs70,000 • Heavy goods transport vehicles will get Rs80,000 Murad said that Sindh has over 27,000 buses, and additional support will be provided to intra-city buses due to higher fuel consumption. “City buses consume around 40 litres daily, and with diesel prices rising sharply, we will provide an additional Rs140,000 to ensure fares are not increased,” he said. He said that transporters will be required to give an undertaking not to raise fares, while the Transport Department is in talks with stakeholders to ensure compliance. “This intervention is aimed at controlling inflation and protecting commuters,” he emphasised. Railway fares frozen: The chief minister said that as part of the coordinated response, Pakistan Railways will not increase fares, with the federal government absorbing the additional financial burden. In response to a question, the chief minister told the media that the government was considering a proposal to determine the market closing time. To a question, the chief minister said that the Sindh government purchased wheat two years ago, and we had stocks from both years. When the government did not procure wheat last year, growers suffered losses. The purpose of purchasing wheat is to stabilise the market by acting as an intervenor. “The government bears the loss under the head of wheat procurement solely to provide wheat flour to the public at a reasonable rate. Therefore, we have decided to procure wheat this year to stabilise prices, support growers, and, above all, avoid importing wheat,” he said. Subsidies announced by Punjab Meanwhile, the Punjab government, acting under Prime Minister Shehbaz Sharif’s national austerity programme, has made all city-based public transport free of charge. Citizens can now travel without tickets on the Orange Line Metro Train, Metro Bus Service, Speedo Bus, and Green Electro Bus across all major cities in Punjab, read a statement issued by the Director General Public Relations (DGPR) Punjab. To support the agricultural sector, the Punjab chief minister announced a direct subsidy of Rs100 per litre on diesel for cultivators. Additionally, registered motorcyclists will receive a relief of Rs100 per litre on a 20-litre quota of petrol. “We will not leave our people alone in these testing times,” the chief minister affirmed, noting that Pakistan’s heavy reliance on imported oil has made it particularly vulnerable to the current global crisis triggered by regional conflicts. CM Maryam also paid tribute to Prime Minister Shehbaz Sharif for his “sincere efforts” in maintaining petroleum supplies and prices for a full month despite severe economic pressure. She urged citizens to opt for public transport over personal vehicles during these extraordinary circumstances to help conserve national resources. The chief minister also pledged to further ease the economic burden on the public as soon as the global situation stabilises.
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