ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif on Friday announced sweeping fuel subsidies and relief measures to shield citizens from increasing global oil prices driven by the ongoing Middle East conflict, as the government intensifies efforts to manage economic fallout.
In a televised address, PM Sharif acknowledged the growing burden on households and farmers as energy prices spike worldwide.
“I am addressing you once again in these difficult times when war is raging in the Gulf and the prices of oil are skyrocketing,” he said. “It is a bitter reality that the poor are suffering and the farmers are facing new challenges.”
The measures come as Pakistan faces rising import costs and supply pressures amid instability in key energy routes, including the Strait of Hormuz, which has pushed global oil prices sharply higher and strained economies across Asia.
The prime minister said his government had delayed passing on the full impact of rising oil prices to consumers over the past three weeks.
“I have not considered it appropriate to burden you with the prices of oil… because I know very well how a common man in Pakistan spends his life,” he said.
As part of the new relief package, the prime minister announced a significant reduction in petrol prices.
“I am announcing a reduction of Rs80 [$0.29] per liter in the price of petrol… the price… will be reduced to Rs 378 [$1.36] per liter,” he said, adding the cut would remain in place for at least one month.
The government also introduced targeted subsidies aimed at easing transport and agricultural costs. Motorbike users and public and goods transport will receive Rs100 ($0.36) per liter support, while small and large transport operators will be provided monthly subsidies to offset rising fuel expenses.
Support has also been extended to farmers, with Rs1,500 ($5.39) per acre announced to help mitigate the impact of higher input costs.
Officials say the measures are being financed partly through adjustments such as levies on higher-end fuel consumption and broader fiscal reprioritization, allowing relief to be directed toward lower- and middle-income groups.
The announcement follows a series of high-level consultations involving federal and provincial leadership, aimed at coordinating a national response to the crisis.
“There was a lot of discussion… a comprehensive program was announced,” PM Sharif said, highlighting efforts to ensure supply stability and avoid shortages seen in other countries.
Additional steps have been rolled out across the country.
Interior Minister Mohsin Naqvi said public transport in Islamabad would be free for 30 days, with the government covering Rs350 million ($1.26 million) in costs.
Provincial authorities have also introduced parallel measures. In Punjab, free public transport has been announced across major systems, while other regions are implementing targeted subsidies for commuters and fuel users.
PM Sharif stated that the government would continue efforts to cushion the impact of the crisis.
“We will not rest until you return to your daily life in peace and tranquility,” he said.
The developments highlight how the conflict has extended beyond the battlefield, driving inflationary pressures and forcing governments to adopt emergency economic measures to protect vulnerable populations.
