Pakistan government considers freezing petroleum product prices despite global increases
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View on mapSindh announces Rs2,000 for bikers as part of fuel subsidy; Punjab, Islamabad make public transportation free
The Sindh and Punjab governments announced a host of relief measures on Friday, a day after the Centre announced an unprecedented increase of 43 per cent and 55pc in the prices of petrol and high-speed diesel (HSD), respectively, to cushion the impact of global oil price shocks amid the US-Israel war on Iran. The Sindh government also announced support for small-scale farmers and transporters. Meanwhile, the Punjab government said it was making public transport free, introducing a targeted monthly subsidy for transporters, a diesel subsidy for wheat-growing farmers and a subsidy for motorcyclists. At the same time, public transport in the federal capital was also made free for the next 30 days, starting from Saturday. Sindh announces fuel subsidy for motorcyclists In a press conference in Karachi, Sindh Chief Minister Murad Ali Shah announced the Sindh government will provide motorcyclists Rs2,000 as part of a fuel subsidy under a scheme unveiled by the federal government a day earlier. At the outset of the press conference, the chief minister, referring to the recent fuel hike, maintained that the government had to take “difficult decisions”. “For three weeks, the prime minister did not increase the cost of fuel; however, the policy had both advantages and disadvantages,” CM Murad said, noting that the blanket subsidy was benefiting the “rich and poor alike”. He recalled that the International Monetary Fund (IMF) also highlighted the need for “targeted subsidies”. He said the federal government, along with the provincial governments, held consultations and developed a “one-month regimen, which has four components”. Under one of the components, he said it was decided that motorcyclists should be “shielded from the hike,” resulting in the Rs100 subsidy, which was announced a day earlier. In that regard, the chief minister said that the provincial government will be providing registered motorcycle owners Rs2,000 per month as part of the fuel subsidy. “The excise department has prepared an application,” he said, adding that once registered, the owners will receive the funds “between April 15-20” as targeted support for bikers. He urged bike owners to get their vehicle registered “under their own name” so they may be able to avail the services. “Go to the excise department’s website and check if your vehicle is registered by entering your CNIC number,” he said. CM Murad added that the application will be available in three days. The chief minister also announced support for small-scale farmers, stating that farmers with land less than 25 acres will be given Rs1,500 per acre. He expressed faith that the subsidy will be able to “compensate for the cost of diesel”. “We can begin the transfers from tomorrow,” he added. Detailing the third component of the targeted subsidy, CM Murad said that the provinces, in consultation with the Centre, had decided on relief for public transport and goods transport as well, of up to Rs100,000. He said the scheme will be administered by the federal government and implemented nationwide “to provide support for smaller provinces”. As for public transport in the province, the chief minister said that authorities have been directed to keep the charges unchanged, “whether inter-city or intra-city”. However, he added that the directive did not extend to ride-hailing applications and taxis. The chief minister vowed that the government “will ensure that public transport fares remain the same despite the fuel hike”. He also announced that railway fares will remain unchanged across the country, with the cost to be borne by the federal government. Punjab makes public transportation free, announces fuel subsidy for motoryclists Meanwhile, the Punjab government announced that free public transport would be provided to the people on intra-city routes across the province. “Citizens will not have to purchase tickets while travelling on public transport — Orange Line Train, Metro Bus Service, Speedo Bus and Green Electric Bus,” Punjab Chief Minister Maryam Nawaz said in a statement. She said it was a major relief package for the people of Punjab in view of the ongoing global crisis. She added that it was also part of the implementation of Prime Minister Shehbaz Sharif’s national savings and austerity programme across the province. The Punjab CM said the government had also decided to provide cash support for the protection of agriculture, food, and farmers. “A subsidy of Rs100 per litre of diesel per acre will be provided to farmers. It has also been decided to provide a subsidy to motorcyclists — every registered bike owner will receive a subsidy of Rs100 on 20 litres,” she said. The CM praised the prime minister for maintaining the supply and prices of petroleum products in Pakistan for one month despite the global crisis. “By providing relief worth billions of rupees within a month, PM Shehbaz Sharif has made a sincere and strong effort to protect the public from hardships,” she said and added the premier had provided relief to the people despite the worst economic conditions. “We will not leave the public alone in difficult times,” she declared. She appealed to citizens to use public transport instead of private vehicles under the current extraordinary circumstances. “Owing to the war, the entire world is facing a severe global economic crisis. Pakistan is being more affected due to its dependence on imported oil,” she added. She ended with a promise that, as conditions improve, efforts would be made to relieve the public from economic burden. In a separate post, CM Maryam announced a targeted monthly subsidy of Rs70,000 for goods transport vehicles, Rs80,000 for large transport vehicles, and Rs100,00 for public transport buses. Taking to X, the Punjab chief minister said, “In light of the surge in international oil prices driven by ongoing global crises and conflict, pressure on domestic fuel costs has become unavoidable. “To mitigate this impact, Punjab has introduced a targeted monthly subsidy: Rs70,000 for registered goods transport vehicles, Rs80,000 for large transport vehicles, and Rs100,000 for public service buses,” she added. She called on transporters across Punjab to “act responsibly”. Punjab CM added that she will be “closely” monitoring the situation to “ensure that the full benefit of this subsidy is passed on to the public”. She also said that all wheat-growing farmers in Punjab with landholdings of up to 25 acres would receive a diesel subsidy of 10 litres per acre at Rs 150 per litre. “I stand firmly with each one of you and am personally overseeing the implementation of this subsidy to ensure it remains transparent, effective, and reaches every deserving farmer without delay. Our farmers are the backbone of Punjab. I will always stand by you, protecting your rights and strengthening your livelihoods,” she said. She also said that motorcycle owners in the province could now get 20 litres of petrol per month at a discounted rate of Rs 100 per litre. “In addition to that, now there will be no charges on the registration or transfer of any motorbike in Punjab,” she said. Free public transport in Islamabad In addition, Interior Minister Mohsin Naqvi said in a post on X that, on the directives of Prime Minister Shehbaz Sharif, all public transport in Islamabad would be made free of cost for the next 30 days, starting Saturday. “The Ministry of Interior will bear the expenditure of Rs 350 million for this public relief initiative,” he said.
DawnApril 3, 2026 at 01:44 PM UTCThe petrol crisis that could electrify Pakistan
The impact of the ongoing US-Iran war on ordinary Pakistani households and business is already being felt. With petrol at Rs458 per litre and diesel at over Rs520, citizens are going to be facing real challenges once more. For a country that only recently suffered inflation rates that peaked at 40 per cent, this conflict could not have come at a worse time. But the crisis can also be an opportunity for Pakistan, and given the bottom-up solar revolution the country has experienced over the last few years, the building blocks are already there for the country to be future ready. Before getting into how this can be done, one must acknowledge that the government’s decision to pass on the price increase was the right call. In a country with limited fiscal space, broad-based subsidies are a luxury Islamabad simply cannot afford. A prolonged subsidy program would hurt, not benefit, households and businesses because of the inflationary pressures that would have been created by an expanding fiscal deficit funded by creation of money supply. But acknowledging fiscal reality does not mean turning a blind eye to human suffering. From the plumber in Karachi to the farmer in Punjab using a tractor in the upcoming wheat harvest, the impact on citizens’ wallets will be devastating. These are real people facing real pain, and policy focus must now shift towards ensuring that these citizens transition to a world where they are not vulnerable to energy price shocks due to the misadventures of other countries. So what is the answer? This is a theme I explored at length in my book, Future Ready: Innovation, Abundance, and the Global South. The argument is straightforward: countries like Pakistan cannot afford to remain tethered to a 20th-century energy model built on imported fossil fuels. The volatility we are witnessing today — where a conflict can cripple the daily lives of 250 million people — is not an aberration. It is the norm in a world of chokepoints, geopolitical rivalries, and concentrated supply chains. The only durable solution is to break the link between mobility and imported fuel. And the way to do that is through the electrification of mobility. Here is the thing that most commentators miss — Pakistan already has the most critical ingredient for this transition: excess electricity. The country has a surplus generation capacity of nearly 20,000 megawatts. Its grid is 40pc renewable and projected to reach 60pc by 2030. Solar panel imports have surpassed in recent years as electricity prices have gone through the roof, largely in part due to the mismanagement of the energy sector bureaucracy. A bottom-up solar revolution, driven not by government diktat but by millions of households and businesses seeking cheaper and more reliable power, has quietly transformed the country’s energy landscape. And it is this bottom-up revolution that is saving Pakistan billions of dollars in imported energy costs during the ongoing crisis. Electrification of mobility and transport is also happening, albeit at a slower pace. In recent months, 70-ton electric trucks have already been rolled out at the Thar coal mining project. In parallel, a policy architecture is also emerging. The National Electric Vehicle Policy 2025-30 has set targets of 30pc electric vehicle sales by 2030, with subsidies of up to Rs65,000 for electric two-wheelers and Rs400,000 for three-wheelers. The energy ministry has rolled out a discounted tariff of approximately Rs39.70 per kilowatt-hour for charging station operators — a 44pc reduction that dramatically improves the business case for private investment in charging infrastructure. Fifty-eight manufacturers have already secured licences for electric two- and three-wheelers, and local production capacity has reached two million vehicles per annum. But policy frameworks and production capacity mean nothing without rapid execution. And this is where the upcoming budget cycle becomes critical. A case for electric mobility To make Pakistan’s mobility sector future ready, federal and provincial governments should use the budget process to redirect a substantial portion of Public Sector Development Programme spending towards the electrification of mobility, with a laser focus on two- and three-wheelers — the vehicles that account for the largest share of daily urban trips and fuel consumption, and whose riders are the most vulnerable to fuel price shocks. Public resources through this process can be used as catalysts for private-sector-led investment. Financing mechanisms that help households purchase EVs on affordable installments and capital subsidies can be provided for entrepreneurs setting up charging stations. Credit guarantees that allow banks to lend to first-time borrowers, such as the motorcycle mechanic who wants to convert his workshop, can multiply government investment at scale. The scale of government incentives can help businesses project demand for these vehicles, allowing them to plan for new manufacturing and assembly capacity. As part of the incentives to scale production, local sourcing norms can be set such that indigenous capacity is built over time. With citizens facing tremendous pain at the pump due to the price hikes, the incentive to electrify mobility is already occurring at the household level. What is now needed is a policy approach that taps into that sentiment. The supply-side dynamics of this transition are also favourable because there is already excess capacity of solar panels and battery-energy storage systems and EVs in the world. China, a strategic ally of Pakistan, is a leader in this space, driving down prices and making next-generation EVs and battery storage systems accessible to the masses. This means that strategic relations can be leveraged to explore win-win outcomes for both Pakistani and Chinese businesses. The beauty of this approach is its cascading benefits. Every EV loan creates a formal credit history for a citizen who may have never had one. Every charging station is a small business with a bank account, tax receipts, and employees. The result would be an energy transition paired with the expansion of financial inclusion at scale, which is precisely the kind of bottom-up economic formalisation that Pakistan has been trying to achieve for decades. While subsidies for fuel imports would literally be burnt into the air, subsidies for electrifying mobility can make Pakistan energy secure for the long haul. The macro benefits of such an approach are equally compelling. Greater electricity demand, particularly from EV charging combined with battery storage, would help make the grid more resilient and sustainable. It would also begin to address the perverse dynamic where surplus capacity sits idle while consumers pay ever-higher tariffs to cover fixed capacity payments. More demand means better utilisation, which means lower average tariffs for everyone. In a country trapped in what analysts rightly describe as a potential utility death spiral where defecting solar users push costs onto remaining grid customers, electrified transport could be the demand anchor that saves the system. Then there is the air quality crisis. Pakistan is the third most polluted country in the world. Lahore routinely ranks among the top three most polluted cities on earth. Electrifying the millions of motorcycles and rickshaws would also be a public health intervention that would improve the quality of life across urban centres in Pakistan. An opportunity to think differently… The opportunity is there for the taking. Pakistan’s solar revolution has already demonstrated that when ordinary citizens are given the right incentives and market conditions, they will drive transformation faster than any government programme. The same energy and entrepreneurial spirit can be channelled into electrified mobility, but only if policymakers have the vision and courage to redirect resources accordingly. The present crisis creates space to rethink mobility in Pakistan. With the sun already powering millions of rooftops in the country, it is time to now convert that energy into powering mobility. *, .story__content { background: black !important; color: white; } .social { filter: brightness(0) invert(1); } .story a { color: #d55 !important; }
DawnApril 3, 2026 at 12:04 PM UTCSindh announces Rs2,000 for bikers as part of fuel subsidy; Punjab makes public transportation free
The Sindh and Punjab governments announced relief measures on Friday, a day after the Centre announced an unprecedented increase of 43 per cent and 55pc in the prices of petrol and high-speed diesel (HSD), respectively, to cushion the impact of global oil price shocks amid the US-Israel war on Iran. At the same time, public transport in the federal capital was also made free for the next 30 days, starting from Saturday. Sindh announces fuel subsidy for motorcyclists In a press conference in Karachi, Sindh Chief Minister Murad Ali Shah announced the Sindh government will provide motorcyclists Rs2,000 as part of a fuel subsidy under a scheme unveiled by the federal government a day earlier. At the outset of the press conference, the chief minister, referring to the recent fuel hike, maintained that the government had to take “difficult decisions”. “For three weeks, the prime minister did not increase the cost of fuel; however, the policy had both advantages and disadvantages,” CM Murad said, noting that the blanket subsidy was benefiting the “rich and poor alike”. He recalled that the International Monetary Fund (IMF) also highlighted the need for “targeted subsidies”. He said the federal government, along with the provincial governments, held consultations and developed a “one-month regimen, which has four components”. Under one of the components, he said it was decided that motorcyclists should be “shielded from the hike,” resulting in the Rs100 subsidy, which was announced a day earlier. In that regard, the chief minister said that the provincial government will be providing registered motorcycle owners Rs2,000 per month as part of the fuel subsidy. “The excise department has prepared an application,” he said, adding that once registered, the owners will receive the funds “between April 15-20” as targeted support for bikers. He urged bike owners to get their vehicle registered “under their own name” so they may be able to avail the services. “Go to the excise department’s website and check if your vehicle is registered by entering your CNIC number,” he said. CM Murad added that the application will be available in three days. The chief minister also announced support for small-scale farmers, stating that farmers with land less than 25 acres will be given Rs1,500 per acre. He expressed faith that the subsidy will be able to “compensate for the cost of diesel”. “We can begin the transfers from tomorrow,” he added. Detailing the third component of the targeted subsidy, CM Murad said that the provinces, in consultation with the Centre, had decided on relief for public transport and goods transport as well, of up to Rs100,000. He said the scheme will be administered by the federal government and implemented nationwide “to provide support for smaller provinces”. As for public transport in the province, the chief minister said that authorities have been directed to keep the charges unchanged, “whether inter-city or intra-city”. However, he added that the directive did not extend to ride-hailing applications and taxis. The chief minister vowed that the government “will ensure that public transport fares remain the same despite the fuel hike”. He also announced that railway fares will remain unchanged across the country, with the cost to be borne by the federal government. Punjab, Islamabad announce free public transport Meanwhile, the Punjab government announced that free public transport would be provided to the people on intra-city routes across the province. “Citizens will not have to purchase tickets while travelling on public transport — Orange Line Train, Metro Bus Service, Speedo Bus and Green Electric Bus,” Punjab Chief Minister Maryam Nawaz said in a statement. She said it was a major relief package for the people of Punjab in view of the ongoing global crisis. She added that it was also part of the implementation of Prime Minister Shehbaz Sharif’s national savings and austerity programme across the province. The Punjab CM said the government had also decided to provide cash support for the protection of agriculture, food, and farmers. “A subsidy of Rs100 per litre of diesel per acre will be provided to farmers. It has also been decided to provide a subsidy to motorcyclists — every registered bike owner will receive a subsidy of Rs100 on 20 litres,” she said. The CM praised the prime minister for maintaining the supply and prices of petroleum products in Pakistan for one month despite the global crisis. “By providing relief worth billions of rupees within a month, PM Shehbaz Sharif has made a sincere and strong effort to protect the public from hardships,” she said and added the premier had provided relief to the people despite the worst economic conditions. “We will not leave the public alone in difficult times,” she declared. She appealed to citizens to use public transport instead of private vehicles under the current extraordinary circumstances. “Owing to the war, the entire world is facing a severe global economic crisis. Pakistan is being more affected due to its dependence on imported oil,” she added. She ended with a promise that, as conditions improve, efforts would be made to relieve the public from economic burden. In a separate post, CM Maryam announced a targeted monthly subsidy of Rs70,000 for goods transport vehicles, Rs80,000 for large transport vehicles, and Rs100,00 for public transport buses. Taking to X, the Punjab chief minister said, “In light of the surge in international oil prices driven by ongoing global crises and conflict, pressure on domestic fuel costs has become unavoidable”. “To mitigate this impact, Punjab has introduced a targeted monthly subsidy: Rs70,000 for registered goods transport vehicles, Rs80,000 for large transport vehicles, and Rs100,000 for public service buses,” she added. She called on transporters across Punjab to “act responsibly”. Punjab CM added that she will be “closely” monitoring the situation to “ensure that the full benefit of this subsidy is passed on to the public”. In addition, in a post on the social media platform X, Interior Minister Mohsin Naqvi said that, on the directives of Prime Minister Shehbaz Sharif, all public transport in Islamabad would be made free of cost for the next 30 days, starting Saturday. “The Ministry of Interior will bear the expenditure of Rs 350 million for this public relief initiative,” he said.
DawnApril 3, 2026 at 11:44 AM UTCPakistan walks into IMF meetings in DC amid war shocks
• Finance minister to hold key talks with Fund, World Bank officials through April 17 • Islamabad to seek safety nets, subsidy reforms, emergency financing options • Oil, gas volatility threatens Pakistan’s reserves, widens current account gap WASHINGTON: Finance Minister Muhammad Aurangzeb is expected in Washington on April 11 for the 2026 Spring Meetings of the International Monetary Fund and the World Bank, a visit that has acquired added significance as developing economies grapple with the widening economic fallout of the ongoing war in Iran. Mr Aurangzeb is scheduled to remain in the United States through April 17. During his visit, he will hold a series of bilateral and multilateral meetings with senior officials of international financial institutions and other stakeholders. The minister will also address Pakistani media on April 17 before departing for Islamabad. The Spring Meetings, set for April 13–18, will bring together finance ministers, central bank governors, policymakers and development experts from across the globe at a time of heightened economic uncertainty. Beyond the formal plenary sessions, Aurangzeb is expected to engage in consultations with IMF and World Bank officials on mitigating the spillover effects of the Iran conflict, particularly for low-income and energy-importing countries such as Pakistan. In recent days, the IMF, the World Bank, and the International Energy Agency have announced a joint coordination mechanism to help countries navigate the economic disruptions triggered by the war. The initiative aims to “strengthen real-time monitoring of global energy markets and assess the broader macroeconomic consequences of supply disruptions, price volatility and financial market stress”. The coordinated effort is designed to track energy price spikes, inflationary trends, trade flows and supply-chain bottlenecks, while aligning policy advice and potential financial assistance. This may include concessional financing, emergency liquidity support and risk-mitigation tools tailored to countries facing acute balance-of-payments or fiscal pressures. The IMF has cautioned that the conflict has “injected sharp volatility into global oil and gas markets, tightened financial conditions and driven up the cost of essential commodities, including food and fertiliser.” Such pressures, the Fund notes, could exacerbate inflation and slow growth, particularly in energy-importing developing economies with limited fiscal space. Rising fertiliser prices also pose a secondary risk to food production in agrarian economies, potentially amplifying food insecurity and social pressures if supply constraints persist. Multilateral institutions have stressed the need for carefully calibrated policy responses that protect vulnerable populations while preserving macroeconomic stability. For Pakistan, the implications are significant. Higher energy import costs would widen the current account deficit and strain foreign exchange reserves. Elevated global prices for fuel, food and agricultural inputs could further intensify domestic inflation and complicate fiscal management. Mr Aurangzeb’s consultations in Washington are therefore expected to focus on a mix of short-term cushioning measures and medium-term reforms. Discussions may include targeted social safety nets, rationalisation of energy subsidies, prudent monetary and fiscal coordination, and access to contingency financing instruments to manage external shocks. The IMF and World Bank have underscored that the Iran conflict is not merely a regional geopolitical crisis but a catalyst for broader global economic stress. They have emphasised the importance of coordinated international responses to prevent energy disruptions from triggering prolonged instability in vulnerable economies. Mr Aurangzeb’s meetings in Washington come at a critical juncture, as Islamabad seeks both policy guidance and financial reassurance to navigate the uncertain months ahead. Published in Dawn, April 3rd, 2026
DawnApril 3, 2026 at 02:35 AM UTCFuel rates explode as govt withdraws blanket subsidy
• Petrol raised by Rs137 to Rs458 per litre; diesel up by Rs184 to Rs520 • Petroleum levy raised on petrol, cut to zero on HSD • Kerosene price increased by Rs34 to Rs458 per litre • Rs100 per litre subsidy for bikers capped at 20 litres per month • Small farmers to receive Rs1,500 per acre support • Early market closures planned to save 1,200MW of electricity ISLAMABAD: The government on Thursday announced an unprecedented increase of 43 per cent and 55pc in the prices of petrol and high-speed diesel (HSD), respectively, along with early market closures and targeted subsidies for bikers, farmers and transporters to cushion the impact of global oil price shocks amid the US-Israel war on Iran. Under the revised rates, the ex-depot price of petrol has been increased by Rs137.23 per litre (42.7pc) to Rs458.41 from Rs321.17, while HSD has been raised by Rs184.49 per litre (55pc) to Rs520.35 from Rs335.86, with immediate effect. The price of kerosene was also increased by Rs34.08 per litre to Rs457.80. Petroleum levy rates were adjusted to limit the increase in diesel prices and its impact on transportation and freight costs. The levy on petrol was increased to Rs160 per litre from Rs105, while it was reduced to zero on diesel from Rs55, sources told Dawn. Speaking late at night in a national broadcast along with the finance minister, Petroleum Minister Ali Pervaiz Malik said the “difficult and responsible” decisions were taken after a national-level consultation involving the president, prime minister, military leadership and provincial chief ministers. He said the objective was to restrict subsidies to the most deserving segments while maintaining fiscal discipline and preserving economic stability achieved over the past two years under international commitments, a reference to the IMF programme. The government also announced targeted relief measures, including a subsidy of Rs100 per litre for two-wheeler users, capped at 20 litres per month for three months. Small farmers will receive a one-time subsidy of Rs1,500 per acre as immediate support during the harvest season. For diesel-dependent inter-city and goods transport, a subsidy of Rs100 per litre would be provided; its price will also be reviewed every month. In addition, trucks carrying 80-85pc of food items would receive direct support of Rs70,000 per month. Large transport vehicles would be given Rs80,000 per month, while inter-city public service vehicles would receive Rs100,000 per month to help keep fares stable. The federal government would also extend subsidies to Pakistan Railways to ensure affordable passenger and freight services, the minister said, adding that all relief measures would be reviewed monthly in light of evolving global conditions. As part of energy conservation efforts, the government also decided to enforce early market closures to save around 1,200MW of peak electricity demand. In consultations with the provinces, the government would separately announce the timings for reduced business hours as part of conservation and demand management. Finance Minister Muhammad Aurangzeb said the decisions were taken with consensus among the national leadership to address energy and food security challenges, noting that other countries were facing more severe pressures. He highlighted that fertiliser prices in Pakistan remained around Rs4,000 per bag compared to international levels of about Rs15,000. The petroleum minister said the government had initially attempted to provide blanket subsidies but global energy markets had become highly volatile and unpredictable, requiring a shift towards targeted support and national discipline. He added that Pakistan had managed to secure energy supply lines despite a sharp increase of 80-90pc in crude oil prices in Oman and Dubai benchmarks, while diesel prices touched a record high of around $250 per barrel on Thursday. He noted that several countries with stronger financial resources had faced fuel shortages and law and order issues due to panic buying, forcing authorities to deploy security forces. The minister said the decision to end blanket subsidies and focus on targeted relief was taken jointly by civil and military leadership to ensure the country stayed within its fiscal limits and avoided slipping back into a financial crisis. Aurangzeb meets US envoy Earlier on Thursday, the government decided to seek flexibility in its International Monetary Fund (IMF) programme to create fiscal space for evolving regional and global challenges amid the US-Israel war on Iran. The development was announced by the Ministry of Finance after a meeting between Finance Minister Aurangzeb and US Chargé d’Affaires in Islamabad Natalie Baker ahead of the upcoming spring meetings of the IMF and the World Bank later this month. In a statement, the finance ministry said both sides discussed Pakistan’s ongoing engagement with international financial institutions and development partners, including efforts to maintain reform momentum under the IMF programme. “The finance minister reiterated Pakistan’s commitment to fiscal discipline while seeking flexibility in light of evolving global and regional challenges,” the statement said. The minister briefed the US diplomat on ongoing efforts to manage energy sector challenges, including procurement, pricing mechanisms and targeted subsidies. The Ministry of Finance said discussions also covered developments in the energy sector and the broader economic outlook, with emphasis on maintaining stability while protecting vulnerable segments of society. The minister highlighted the impact of rising global oil prices on Pakistan’s import bill, inflation outlook and overall macroeconomic stability. Ms Baker reaffirmed US support for Pakistan’s economic reform agenda and appreciated the government’s efforts to stabilise the economy under challenging circumstances. Published in Dawn, April 3rd, 2026
DawnApril 3, 2026 at 02:18 AM UTCGovt hikes petrol price to Rs458 per litre, HSD price to Rs520 per litre
Petroleum Minister Ali Pervaiz Malik announced on Thursday that the price of petrol was being raised to Rs458.4 per litre and that of high-speed diesel (HSD) to Rs520.35 per litre. He made the announcement while addressing a press conference alongside Finance Minister Muhammad Aurangzeb. Breakup of the new petrol prices Soon after his announcement, the energy ministry also notified the new prices, with petrol’s price being raised by Rs137.24 per litre and diesel’s by Rs184.49 per litre. The government also increased kerosene prices by Rs34.08 per litre to Rs457.80 per litre. Malik said the new prices would be effective from Friday. The latest hike comes amid a global fuel crisis resulting from the US-Israeli war on Iran, which began on February 28. It was announced around a week after Prime Minister Shehbaz Sharif said he had rejected a third recommendation for an increase of Rs95 per litre in the price of petrol and Rs203 per litre in that of HSD since the war began. Previously, the PM said he had rejected an increase of Rs76 per litre in the price of petrol Rs177 per litre in that of HSD. The premier had also said that he had rejected a similar recommendation earlier as well, following a hike in oil prices in the international market on March 13. Though after the war began, the government had initially hiked petrol and diesel prices by Rs55 per litre on March 6 and announced unprecedented austerity measures on March 9 in the first steps to deal with the situation. Targeted subsidy initiatives Speaking after Malik at the press conference, Finance Minister Aurangzeb said the government was announcing a targeted subsidy programme, adding that it had been decided that a subsidy of Rs100 per litre would be given for two-wheelers. He said there would be a cap of 20 litres for every month for this initiative, adding that the relief would be given for the next three months. Similarly, small farmers would be provided a one-time Rs1,500 per acre subsidy as agriculture contributed 24per cent of the gross domestic product and was key to food security. On HSD-run inter-city and goods transport, Rs100 per liter subsidy would be provided and its price would be reviewed every month, he said. In this regard, Rs70,000 direct support would given for trucks carrying almost 80-85pc of food items, the finance minister said. Large transport vehicles would be given Rs80,000 per month while inter-city passenger or public service vehicles would be provided Rs100,000 per month to ensure that fares remained stable. He said the federal government would also give subsidy to facilitate low-income segments travelling through trains. The finance minister, however, did not explain and when the subsidies would be rolled out. Aurangzeb also said it had been agreed that after consultation with the provinces, revised timings for markets would be “advised” next week. ‘Difficult and responsible’ decisions At the outset of the press briefing, Malik expressed gratitude to President Asif Ali Zardari, chief ministers of all provinces and the leadership of the ruling party’s allies for their guidance at this “critical time”. He said energy prices had skyrocketed in the international market due to the ongoing Middle East war. “It has not just engulfed the entire region but the entire world as well,” he added. The minister stressed the need for discipline and unity at this time, expressing the hope that the “difficult and responsible” decisions that the government had taken today would be seen in the context of the situation in the Middle East, in which the Pakistan government had no role. He regretted that the war had also affected the progress made for the stability and prosperity of Pakistan’s economy over the last one to two years. Given the situation, he highlighted the need for de-escalation efforts on the diplomatic front. He then pointed out that crude oil prices in Dubai and Oman markets, from where Pakistan procured 80 per cent of its energy supplies, had increased to record highs. Crude oil and diesel prices, he added, had reached historic highs, crossing the $250 dollar mark. Malik said Prime Minister Shehbaz Sharif had tried to shield the people from the impact of these prices by interventions such as austerity measures and cuts in development budgets. He said the federal government had spent Rs129 billion since March 1 to “protect the people”, adding that meanwhile, arrangements for alternative energy supply lines also had to be made due to the disruption of traffic in the Strait of Hormuz. “We tried to handle this matter in a better manner by means of austerity measures and through diplomacy,” he said. The minister said the government had been successful on this front to some extent, pointing out that even countries wealthier than Pakistan had been struggling in these times. Malik said the government had taken timely decisions, which ensured no disruptions in fuel supplies, acknowledging however that the hike in prices would have caused difficulties for the people. He said Pakistan had some fiscal constraint and was also bound by some international agreements. Moreover, he continued, the country’s economic stability could not be imperilled. Hence, he said, the government had decided to move away from blanket subsidy and focus this relief towards just the “weak segments” who needed it. He said a meeting was held today, where the prime minister and military leadership were also present. It was decided at the meeting that instead of giving a blanket cover, “the focus will have to be sharpened”, he added.
DawnApril 2, 2026 at 10:33 PM UTCPakistan to seek flexibility in IMF programme for evolving contingencies amid war on Iran
ISLAMABAD: Amid a continuous surge in the global market, Pakistan on Thursday said it would seek flexibility in the International Monetary Fund (IMF) programme to create room for evolving contingencies following the US-Israeli war on Iran and pass on the burden of petroleum prices to consumers. This was announced by the Ministry of Finance after a meeting between Finance Minister Muhammad Aurangzeb and the US Charge d’Affaires Natalie Baker ahead of upcoming spring meetings with the IMF and the World Bank later this month. An official statement by the ministry said both sides discussed Pakistan’s ongoing engagement with international financial institutions and development partners, including efforts to maintain reform momentum under the IMF programme. “The finance minister reiterated Pakistan’s commitment to fiscal discipline while seeking flexibility in light of evolving global and regional challenges,” the statement said. The minister also briefed the US diplomat on ongoing efforts to manage energy sector challenges, including procurement, pricing mechanisms, and targeted subsidies. “While supply arrangements were being maintained, the government was working on improving price transmission and ensuring that subsidies are better targeted towards vulnerable segments such as small farmers and public transport users,” the minister was quoted as saying. Pakistan has frozen the major petroleum prices — petrol and diesel — for three weeks now after initial increase in the first week of the conflict at an estimated expense of Rs129bn so far. While global diesel and petrol prices have surged by over 220pc and 80pc since the war broke out, diesel has jumped more than $46 per barrel – over 15 per cent on Thursday alone – the highest in history. The federal government has now persuaded the provinces to take responsibility for subsidising bikers, farmers and public transport for targeted support and pass on the actual imported cost to retail prices. In its statement, the ministry said discussions also touched upon developments in the energy sector and broader economic outlook, with an emphasis on ensuring stability while protecting vulnerable segments of society. The minister underscored the broader implications of rising global oil prices on Pakistan’s import bill, inflation outlook, and overall macroeconomic stability. Meanwhile, Baker reaffirmed US support for Pakistan’s economic reform agenda and appreciated the government’s efforts to stabilise the economy under challenging circumstances. She emphasised continued US interest in promoting investment in key sectors such as energy, mining, technology and logistics, the statement said. Both sides also discussed opportunities for enhancing investment flows, including participation in upcoming international forums. The potential for collaboration in infrastructure development, digital connectivity and regional trade was also explored, it said. The finance minister acknowledged the constructive role of US partners and emphasised Pakistan’s openness to facilitating investment and improving the business environment. He reiterated the government’s focus on structural reforms, export-led growth, and strengthening institutional frameworks, the statement added. The ministry further said that during the meeting, both sides held a comprehensive exchange on Pakistan-US bilateral relations, ongoing economic developments, and avenues for enhanced cooperation in trade, investment, and energy. Baker also highlighted a recent symposium held in Washington, DC, hosted by the Pakistan Caucus in the US Congress, which brought together policymakers, diaspora representatives, and business leaders to review progress in bilateral ties and explore future opportunities. She noted the positive trajectory of engagement between the two countries, the statement said.
DawnApril 2, 2026 at 02:55 PM UTCPM Shehbaz says Centre, provinces need to make collective efforts to provide relief amid global oil crisis
ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday said the Centre and provinces need to set their priorities and make collective efforts to provide relief to the needy amid the global oil crisis triggered by the US-Israeli war on Iran. He made the remarks while addressing a high-level meeting, attended by Chief of Defence Forces Field Marshal Asim Munir, the chief ministers from all four provinces and federal ministers. The premier said that the the Centre and provinces should utilise their resources sagaciously and curtail their development projects as much as possible while also utilising their resources on agricultural-related initiatives. “We have to spend this money on public goods and transport. Now we have to set our priorities jointly,” he added. He also highlighted the government’s initiatives to protect the economy and the common man from the adverse impact of the global oil crisis. In his remarks, PM Shehbaz also said that like other countries across the world, Pakistan was “being severely affected by this war”. He added that after achieving macroeconomic stability, the “time for prosperity and development had arrived but unfortunately, as a result of this war, we are facing unlimited economic difficulties”. He said two Pakistani vessels that were “waiting to pass through the Strait of Hormuz” were able to do so thanks to the efforts made by Deputy Prime Minister and Foreign Minister Ishaq Dar and CDF Munir. “In recent days, arrangements were made for 20 more Pakistani-flagged vessels” [to pass through the strait], which will see further progress in the coming days,” he highlighted. He also recalled that his teams held separate meetings with the chief ministers soon after the conflict sparked, after which it was decided to “pass on” hikes of Rs55 in petroleum prices. The PM also highlighted the various austerity measures undertaken by the government, especially thanking PPP Chairman Bilawal Bhutto-Zardari for “showing great interest” and calling upon him, as well as President Asif Ali Zardari for holding meetings. “We gave a blanket cover in these three weeks, and regarding this, the Centre contributed Rs129bn. We made a Rs100bn cut in the Public Sector Development Programme and we added the savings into the account, from which the Centre bore the expenses,” he said.
DawnApril 2, 2026 at 11:45 AM UTCPM Shehbaz says Pakistan successfully addressed demand, supply of essential goods amid regional conflict
Prime Minister Shehbaz Sharif said on Wednesday that many countries were facing difficulties in maintaining the balance between demand and supply of essential commodities due to the global situation, but Pakistan was addressing the challenging situation “successfully and effectively,” the Prime Minister Office (PMO) said. According to a statement by the PMO, the prime minister made these remarks during a review meeting which was held to devise a comprehensive strategy to prevent the country from the financial and economic impacts arising from the regional conflict. PM Shehbaz commended the effective and timely measures taken by institutions to prevent any emergency situation regarding the demand and supply of essential goods. He appreciated the steps taken by relevant ministries and institutions through mutual coordination to address the financial and economic challenges and directed them to further enhance their cooperation. “After meeting domestic needs of food and essential items, progress is being made on a comprehensive strategy to export surplus production,” the prime minister was quoted as saying. PM Shehbaz said the government would continue taking all necessary steps for the stability and development of the national economy with firm resolve, as well as for public welfare. Considering a hike in prices in the global market, the prime minister directed to devise a comprehensive medium and long-term strategy to tackle the economic and financial impacts on the country. The prime minister issued special directions that the strategy, focused on stability and growth of the economy, be formulated in cooperation with relevant ministries and institutions, the PMO said. While preparing the strategy, the external and internal macroeconomic impacts must be carefully evaluated, the premier directed. He also directed that effective measures be proposed to minimise the impact of rising production costs, due to the regional conflict, on the country’s exports and overall domestic output. “Available resources and opportunities should be fully utilised to prevent the adverse effects of the current economic challenges on agricultural and industrial production,” the PMO said, citing the prime minister. As per the premier’s directives, relevant ministries and institutions were reviewing the economic impacts of the regional situation on a daily basis.
DawnApril 1, 2026 at 11:58 AM UTCOff the road: How rising fuel costs are pushing ride-hailing captains to the brink
Amjad Ali Khan, 27, left his hometown of Umerkot and moved to Karachi in 2010 in search of a better livelihood. Over the next decade, he moved from one precarious job to another — working in factories, taking odd shifts at hotels and cleaning bungalows — before finally settling down as a driver. Two years back, he rented two cars — one for himself and the other for his brother-in-law — and signed up on Yango, a ride-hailing service. Amjad’s earnings rose to roughly Rs12,000 per day, of which nearly half went to rent and fuel, leaving him with around Rs3,500 to take home and thereby allowing him to call his family of four to the port city earlier this year. But then, war came to the Middle East. While Pakistanis are no strangers to conflict (with neighbouring India and Afghanistan in recent months), this one, despite not involving Islamabad, hit the country’s jugular vein: a massive surge in petrol prices. When the United States and Israel attacked Iran on February 28, the impact travelled far beyond the battlefield, disrupting oil flows through the Strait of Hormuz — a corridor that carried 20 per cent of global liquified natural gas and a quarter of seaborne oil. In the aftermath, Pakistan increased petrol prices by a staggering Rs55 overnight, with another rise on the cards in the coming days. Running on empty For Amjad, the developments threatened to upend the life he had only just started to build. “Even during Ramazan, we managed,” he said, referring to the holy month when economic activity typically slows down in the country. “Now, [the cost of] petrol has completely disrupted everything.” On the day of the interview, he had already warned the car’s owner he might return the vehicle if prices rose again. “I have already decided … if there is yet another price hike, I will head back to my village,” he said. Ever since petrol prices skyrocketed to Rs321.17, Amjad has been scrambling to make ends meet. “Now there are days when I return home with no money.” The 27-year-old is not alone. Muhammad Tahir, who works as a Foodpanda rider, narrated a similar ordeal to Dawn. He would make between Rs50 and Rs70 per delivery and get a weekly fuel allowance of Rs1,500, far from what he spends every day. He was only getting by when the petrol bomb dropped. Now, a day’s fuel costs him Rs1,600 instead of the previous Rs1,000-Rs1,100. “If we request an increase in the fuel allowance, we are straight-up told to leave,” he sighed. Like Amjad, Tahir too has decided to quit. There’s no other option, he lamented. According to business and economic journalist Khurram Hussain, Asia has been hit the hardest due to the oil price and supply disruptions triggered by the war. In an op-ed for Dawn on March 26, he explained that Pakistan’s fiscal envelope is too weak to carry the burden of fuel price subsidies for very long, making a price hike unavoidable within days now. “Having held them steady for two weeks now, the government is in the unenviable position of having to pass on another major jolt to the people to avoid derailing its fiscal framework altogether,” he wrote. Simply put, this will make life harder for people like Tahir and Amjad, whose households run on the vehicles they drive. Qamar Abbas, an inDrive captain and the sole breadwinner of his seven-member family, has been on Karachi’s roads since 2019. Speaking to Dawn, he held the ride-hailing companies — such as Yango, inDrive and Bykea — responsible for the disproportionate burden that has befallen drivers like him. “Our current rates have not been adjusted since 2018,” he said. “Back then, petrol cost Rs120 per litre … today it stands at Rs322 per litre, but our payments remain the same,” Abbas said, adding that none of the companies had increased per-kilometre rates to adjust to the recent fuel price hike. Before the war, Abbas was able to take around Rs100,000 home monthly. That has shrunk by 50pc in the last 30 days. For its part, Parisey Tariq, communications manager at inDrive, said that the company does not approach fuel price movements with a flat or automatic fare increase. “We keep our pricing fair, and any adjustments are reviewed in the context of overall market conditions rather than a direct pass-through tied only to petrol prices,” she said, explaining that multiple factors, including trip distance, route efficiency, driver availability, time, and broader operating cost pressures, were “continuously assessed” to ensure a fair balance between rider affordability and driver earnings. In a written response to Dawn, Parisey emphasised that inDrive’s focus was on ensuring fairness for both the drivers and customers, and one of the ways to do that was by supporting drivers through “marketplace measures and incentives, while keeping prices affordable for customers”. However, she did not get into the specifics of these incentives. When the math stops math-ing Over the past few years, the ride-hailing sector in Pakistan has become an important part of everyday mobility, with over two million people using the services. While motorcycle-based rides have become increasingly popular among male commuters, car-based services remain particularly important in urban centres such as Karachi, where many women rely on them due to unreliable public transport. Ayesha Emaad Khan has spent nearly two decades in the banking industry. Today, a significant part of her routine and income is consumed simply in getting around the city. Ever since she moved to Karachi in 2018, she has relied on ride-hailing services not just for work but also to simply manage daily life. Every day, she travels between her workplace and home — a gruelling 15km-17km distance — using these services. Much like the rest of Karachi, she too gets off at 5:30pm, which means traversing through peak traffic; an easy 20-minute drive often turns into 90 minutes of torture. Initially, a one-way trip cost her about Rs900, but following the fuel price hike, the same journey now means a dent of Rs1,700-Rs2,000 on the pocket. “On days of rallies, protests, rain (the list goes on), this could go up to anything between Rs2,500 and Rs3,000 bucks,” she told Dawn. “It is almost the same as paying for a one-day trip to Hyderabad,” she quipped. “Time bhi utna hi lagta hai, paise bhi utne hi lagte hain (it takes the same amount of time and money).” But desperate times call for desperate measures. At Ayesha’s office, even senior executives have shifted to motorcycles and rickshaws. She, too, has stopped using Yango and works from home most days. On days she has no other choice but to be in the office, she uses a rickshaw. “Even if I have to walk 5-10 minutes to reach a bus stop, I do that. But I will not pay Rs3,000 every day on a one-way trip,” she stressed. Similarly, Haleema*, a Lahore-based teacher in her mid-20s, heaved a sigh of relief when her school switched to a work-from-home schedule. Despite carpooling with her colleagues every day, she would not have been able to afford fuel. In fact, she recalled that within hours after the hike was announced, her driver had increased the monthly vehicle fee by almost 25pc. In the wake of the massive price hike, the private sector has been encouraged to move to hybrid work schedules, where employees are allowed to work from home for most of the week to reduce the fuel burden. On the other hand, inDrive’s Tariq stated that even though petrol price hikes have made users more price-conscious, which may “ slightly affect short-term trip demand and frequency”, the overall mobility demand, according to her, would remain strong as ride-hailing was a daily necessity for many commuters. The cost of staying on the road As the war crosses the 30-day mark, one thing is clear: this crisis is not going away anytime soon. So, what next? For its part, the government is undertaking efforts to provide relief to the lower and middle classes, according to Prime Minister Shehbaz Sharif. “We will not leave the economically weaker section of the society alone in this hour of difficulty,” he said earlier this week. At a consultative meeting last week, both the federal and provincial governments agreed to introduce a proposed capped fuel subsidy for motorcyclists, while higher-consumption users would pay market-based prices. This would be implemented through a mobile application-based quota system to ensure subsidies reach low-income groups and minimise leakages. But the question remains: will these policy responses account for those whose livelihoods depend entirely on fuel? And is the government, already grappling with mounting fiscal pressures, even in a position to address such realities at scale? As customers begin to drop off, fuel prices continue to surge, and inflation bites deeper, uncertainty looms large. For ride-hailing drivers, it is reshaping not just their earnings, but the way they work — and increasingly, the experience they offer. Mustafa Rehman, 28, largely depends on ride-hailing services — motorcycle-based rides — for his daily commute. Of late, he has noticed a behavioural shift in drivers. “There is a lot of negativity, dejection, and depression … they barely interact, and even if they do, it is about their life struggles,” he told Dawn. Rehman recalled being reached out to by several riders seeking financial help, something that has become very common ever since the fuel price hike. This crunch time was also visible to him — torn seats, missing horns, broken headlights. Karachi’s Ayesha also narrated a similar experience. Being a frequent conversationalist during her rides between work and home, Ayesha observed that the quality of service provided by the captains had deteriorated. “Obviously, their morale, their attention span, their presence of mind, all these factors matter to someone who is using [the services] daily […] the kind of conversation and feedback I am getting from these captains speaks about the pressure they are under to make ends meet,” she said. Meanwhile, in its response to Dawn, Yango said the company was working on bringing down the drivers’ day-to-day costs through a series of targeted collaborations, including fuel vouchers, discounts on oil and lubricants, and savings on everyday essentials such as medicines and groceries. “We expect to announce several of these partnerships in the coming weeks as part of our ongoing efforts to help partner drivers manage operational costs while continuing to provide affordable mobility for riders,” it said. But for drivers like those Ayesha speaks to, relief still feels a step behind reality. For now, the strain on drivers may be contained, but it’s visible in telling ways: the worn-out vehicles, the frustrated drivers, and the conversations that circle back to empty pockets. What was once a routine, almost invisible service, is becoming harder to sustain, both for those behind the wheel and those in the back seat. *Names changed to protect identity
DawnApril 1, 2026 at 09:42 AM UTC