Prime Minister Shehbaz Sharif announced on Saturday that the government had begun disbursing relief funds to operators of public transport and freight vehicles through digital wallets, marking a significant step in the administration’s effort to deliver targeted financial assistance under a transparent and efficient system. The announcement was made through the Prime Minister’s Office on the social media platform X, following a meeting chaired by the prime minister to review the country’s petroleum reserves and assess the progress of measures taken to provide relief to citizens during the ongoing fuel crisis.
The digital disbursement framework covers a range of transport categories, with subsidies being transferred for public transport buses and wagons as well as goods transport trucks and freight vehicles. The government had previously outlined a structured relief package under which trucks carrying 80 to 85 percent of food items would receive direct support of Rs70,000 per month, large transport vehicles would receive Rs80,000 per month, and inter-city public service vehicles would receive Rs100,000 per month to help keep fares stable. A subsidy of Rs100 per litre on diesel was also announced for diesel-dependent inter-city and goods transport, with diesel prices subject to monthly review. The prime minister was briefed at the meeting that adequate reserves of petroleum products remained available to meet the country’s requirements, and that implementation of the various relief initiatives was progressing as planned.
The relief measures have been rolled out against a backdrop of sharply rising fuel prices driven by the escalation in the United States-Israeli war on Iran. After initially resisting calls to raise fuel prices on three separate occasions, the government announced an unprecedented increase of 43 percent in petrol and 55 percent in high-speed diesel prices, citing rising international oil market conditions. The announcement drew considerable public backlash, prompting PM Shehbaz to subsequently slash the petroleum levy by Rs80 per litre in a late-night address to the nation, bringing the price of petrol down to Rs378 per litre. In the same address, the prime minister announced that all federal cabinet members would forgo their salaries for the next six months as part of austerity measures, with the prime minister reiterating that savings from government austerity would be directed toward public relief. The transition to digital wallet disbursements for transport subsidies is intended to ensure that support reaches economically vulnerable groups as directly and quickly as possible, reducing the risk of leakage or misappropriation in the distribution chain.
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