Digital fuel rationing programme approved

In a key policy move aimed at tackling the ongoing energy challenge, the government has decided to introduce a targeted subsidy mechanism through a mobile application, with authorities agreeing to fast-track a technology-driven system to ensure transparent and efficient delivery of relief.

The decision was taken during a high-level consultative meeting on petroleum prices and subsidy reforms, chaired by Finance Minister Muhammad Aurangzeb, where federal and provincial leadership converged on the need to balance relief with fiscal discipline.

The meeting underscored that while limited fiscal space constrains broad-based subsidies, a targeted, data-driven approach could help channel benefits to those who need them most.

During the session, the Petroleum Division briefed participants that fuel supplies across the country remain stable and satisfactory, easing concerns of shortages despite regional uncertainties.

The Ministry of IT presented a proposal for a modern, technology-based system to administer targeted subsidies on petroleum products, aimed at enhancing transparency and ensuring efficient distribution.

Provincial representatives echoed support for coordinated action.

Sindh Chief Minister Syed Murad Ali Shah appreciated the uninterrupted supply of fuel and stressed the importance of promoting a culture of conservation among the public.

Representing Punjab, Senior Minister Marriyum Aurangzeb said the benefits of falling global oil prices must be passed on directly to consumers, while calling for the formulation of multiple policy options in line with evolving conditions.

Khyber-Pakhtunkhwa Finance Minister Muzammil Aslam commended the federal government's efforts, noting that Pakistan had managed to maintain fuel supply more effectively than many countries in the region.

Balochistan Finance Minister Mir Shoaib Nosherwani also presented his proposals during the meeting.

Officials informed the meeting that the government's fiscal space remains limited, largely confined to revenues generated through the petroleum levy, making it essential that any relief package be carefully calibrated to safeguard economic stability.

Finance Minister Muhammad Aurangzeb emphasised that the current situation should be viewed not as a challenge but as an opportunity for structural reforms.

He stressed the need for data-driven decision-making to improve transparency in the tax and subsidy systems, while also highlighting the importance of encouraging responsible consumption among the public.

The meeting concluded with a consensus to finalise the targeted subsidy framework using modern technology at the earliest, while ensuring close coordination between the federal and provincial governments to implement the system effectively.