Govt moves towards targeted petroleum subsidy system to ensure transparent relief
A high-level consultation chaired by Finance Minister Muhammad Aurangzeb Friday decided in principle to introduce a targeted subsidy system for petroleum products, aimed at ensuring relief reaches only deserving segments of society.
The meeting reviewed the country’s petroleum supply and demand situation and discussed key policy reforms, including pricing mechanisms and subsidy distribution. Officials stated that the supply of petroleum products across the country remains stable.
Participants considered leveraging technology to implement a transparent subsidy framework, with proposals to utilise National Database and Registration Authority (NADRA) for identifying eligible beneficiaries. The move is intended to curb misuse and ensure efficient delivery of financial relief.
The consultation also explored policy measures to discourage unnecessary consumption of petroleum products, alongside plans to pass on the benefits of any reduction in global oil prices directly to the public.
Federal Minister for Petroleum Ali Pervaiz Malik and IT Minister Shaza Fatima Khawaja attended the meeting, along with Murad Ali Shah, Punjab Senior Minister Marriyum Aurangzeb, KP Finance Advisor Muzammil Aslam, and the Balochistan finance minister.
During the session, Muzammil Aslam appreciated the government’s efforts in managing petroleum supply, while Murad Ali Shah stressed the need for energy conservation measures. Marriyum Aurangzeb called for more effective policy planning.
The finance minister emphasised the importance of maintaining economic stability, noting that the petroleum levy remains a significant source of government revenue. Participants agreed to closely monitor global oil price fluctuations and accelerate coordination between the federation and provinces.
The meeting decided to adopt data-driven decision-making, enhance transparency, and transform current economic challenges into opportunities for structural reforms, while ensuring public relief and maintaining macroeconomic balance.