KARACHI: Sindh Chief Minister Syed Murad Ali Shah has announced a Rs55 billion targeted subsidy package aimed at protecting vulnerable groups from rising fuel costs driven by regional tensions, including the ongoing Iran conflict.
Read More: Sindh unveils Rs2000 biker fuel subsidy
Speaking at a press conference, the chief minister said the provincial government would bear the full financial burden of the initiative, which is designed to provide relief while maintaining fiscal discipline. He noted that Pakistan, as a fuel-importing country, is facing increased economic pressure due to surging global oil prices.
Murad Shah said the package was finalised after consultations with national leadership, including Asif Ali Zardari and Prime Minister Shehbaz Sharif, with a shift from blanket subsidies to a targeted approach recommended by the International Monetary Fund.
Sindh CM @MuradAliShahPPP unveiled a comprehensive, targeted subsidy package worth Rs55 billion. Each registered bike owner will receive Rs2,000 per month, equivalent to a subsidy of Rs100 per litre for 20 litres,” he said. pic.twitter.com/nM4aE4dhwM
— Sindh Chief Minister House (@SindhCMHouse) April 3, 2026
Under the plan, motorcycle owners—considered among the most affected—will receive Rs2,000 per month, equivalent to a subsidy of Rs100 per litre for 20 litres. The initiative will cover approximately 6.7 million registered motorcycles in Sindh, with payments made through a digital registration system linked to CNICs and bank accounts.
The agriculture sector will also benefit, with around 336,000 small farmers receiving Rs1,500 per acre to offset diesel costs for wheat processing. Payments are expected to begin soon using verified data.
To stabilise transport fares, subsidies will be provided to passenger buses and goods transport vehicles. Additional financial support will be extended to intra-city buses to prevent fare hikes amid rising diesel prices.
Murad Shah emphasised that transporters would be required to maintain current fare levels, while the government continues coordination with stakeholders to ensure compliance.
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He reaffirmed the government’s commitment to shielding citizens from inflationary pressures during the ongoing economic challenges.