The government has decided to introduce a Subsidy Plan for motorcycle and rickshaw owners using funds saved through austerity measures. Officials say the plan will use around Rs23 billion to support people facing rising fuel costs.
The announcement was shared during a meeting of the Senate Standing Committee on Petroleum. During the briefing, officials explained how the savings from government spending cuts will be used to support the public.
According to the Petroleum Secretary, the Rs23 billion saved under the austerity policy will fund the new Subsidy Plan. The program aims to help motorcycle and rickshaw owners manage higher transportation expenses.
Officials said the assistance will be provided to eligible beneficiaries through the database of the Benazir Income Support Programme. The system will help identify low-income individuals who qualify for financial support.
Authorities added that both the Oil and Gas Regulatory Authority and the Petroleum Division have started working on the Subsidy Plan. These institutions will develop the structure of the program and ensure the funds reach eligible recipients.
Government officials said that any additional savings generated under the austerity policy may also be used for public relief programs. They noted that similar subsidies were provided during the COVID-19 pandemic to support vulnerable households.
During the committee meeting, lawmakers questioned how the government had managed to save Rs23 billion. They also asked for details about the measures used to generate these savings.
Committee members stressed that the benefits of the Subsidy Plan should directly reach the public. They emphasized that the funds should not benefit private companies.
In response, officials said several cost-cutting steps had been introduced under the direction of Shehbaz Sharif. These measures were designed to reduce government expenses and redirect resources toward public welfare.
The briefing also included updates about the country’s petroleum reserves. Officials shared data about current fuel availability across different energy products.
According to the Petroleum Division, Pakistan currently has crude oil reserves for around 11 days. Diesel reserves are estimated to last about 21 days.
Officials said petrol supplies are expected to last approximately 27 days. Meanwhile, the country has LPG reserves for around nine days and JP-1 fuel for about 14 days.
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Authorities said the Subsidy Plan is part of broader efforts to reduce the financial pressure on citizens. The government hopes the program will provide relief to millions of motorcycle and rickshaw owners who rely on fuel for daily income and transportation.
