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Pakistan fuel subsidy scheme

EU Correspondent by EU Correspondent
October 16, 2026
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PRESS RELEASE

Pakistan’s Fuel Subsidy Scheme Reaches Over 10 Million Beneficiaries, Demonstrating Targeted Relief Amid Global Energy Pressures

Brussels, 13 October 2026: Prime Minister of Pakistan Muhammad Shehbaz Sharif has appreciated the collective efforts of federal and provincial governments and relevant institutions in implementing Pakistan’s fuel subsidy scheme, which has registered more than 10.8 million citizens, providing targeted relief to millions of households amid persistent global energy pressures.

Speaking at a reception hosted to acknowledge the contributions of ministers and government officials, the Prime Minister described the achievement as a testament to effective coordination, teamwork and commitment to public welfare. He announced a national award for Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja in recognition of her contribution to the initiative, while other officials involved in its implementation would receive shields of appreciation.

The government has allocated Rs75 billion for the programme, which provides fuel subsidies to eligible motorcyclists, rickshaw and Qingqi operators, and owners of cars with engine capacities of up to 800cc. The Prime Minister reaffirmed that the initiative would continue, underscoring the government’s commitment to protecting vulnerable segments of society from rising fuel costs.

According to the latest figures shared by the Prime Minister, more than 10.8 million citizens have registered for the scheme, with approximately 27 million fuel subsidy tokens issued. Around 19.4 million tokens have been redeemed, while nearly 9.2 million citizens have used tokens on multiple occasions. Motorcyclists account for approximately 96 per cent of the beneficiaries.

Considering an average household size of five, the Prime Minister estimated that the scheme’s benefits could extend directly and indirectly to around 50 million people.

The Prime Minister expressed gratitude to the provincial governments and chief ministers for their cooperation, while acknowledging the contributions of Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar, Finance Minister Muhammad Aurangzeb, Planning Minister Ahsan Iqbal, and Minister Shaza Fatima Khawaja. He also commended the role of federal and provincial officials, the Petroleum Division, the Oil and Gas Regulatory Authority (OGRA), the State Bank of Pakistan, the National Database and Registration Authority (NADRA), the Pakistan Telecommunication Authority (PTA), telecommunications operators and other partner institutions.

Highlighting the progress made since an earlier fuel relief initiative launched in February, the Prime Minister said that coordinated efforts had helped expand the programme’s reach substantially, despite challenges encountered during its planning and implementation.

A Model of Targeted Public Relief

At a time when energy price pressures are affecting households and economies across the world, Pakistan’s experience offers an example of how technology-enabled delivery systems and coordinated federal-provincial action can help channel targeted financial relief to vulnerable citizens.

The initiative underscores the importance of responsive public policy, transparent implementation and institutional cooperation in mitigating the impact of energy costs on ordinary families. Pakistan’s experience may offer useful insights for other countries exploring practical measures to protect low-income households during periods of energy market volatility.

Tags: energy pricesfuel subsidyPakistanShaza Fatima KhawajaShehbaz Sharif
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