Sindh turns to targeted relief as fuel prices bite

Rs55b package to support bikers, small farmers, transporters

KARACHI:

In a move to cushion the poorest segments of society from the ripple effects of rising fuel prices, the Sindh government has unveiled a Rs55 billion targeted subsidy package. Chief Minister Murad Ali Shah announced the subsidy initiative during a press conference at the CM House on Friday.

CM Shah said the provincial government would bear the full financial burden of the Rs55 billion relief package. The one-month relief framework, currently being finalised, includes four major components to be implemented jointly by federal and provincial governments.

A key feature of the package is relief for motorcycle owners. With approximately 6.7 million registered motorcycles in Sindh, each eligible owner will receive Rs2,000 per month - equivalent to a subsidy of Rs100 per litre on 20 litres of fuel. A digital application developed by the Excise Department will facilitate registration through national ID and bank details. Additionally, motorcycle ownership transfers will be made free of charge for 15 days to ensure benefits reach rightful recipients.

In the agricultural sector, around 336,000 small farmers owning between one and 25 acres will receive Rs1,500 per acre to offset diesel costs for wheat threshing. Payments are expected to begin next week, supported by verified data.

To curb fare hikes, the govt has also introduced subsidies for transporters. Passenger buses will receive Rs100,000 per vehicle, two-axle freight trucks Rs70,000, and heavy transport vehicles Rs80,000. Urban buses, due to higher fuel consumption, will be given an additional Rs140,000. Transporters will be required to commit to maintaining current fare levels, with the transport department engaging stakeholders to ensure compliance.

Shah added that Pakistan Railways has also agreed not to increase fares, with the federal govt absorbing the additional financial burden.

Responding to questions, the CM said the govt is considering regulating market operating hours as part of broader economic management efforts. He also confirmed that Sindh holds sufficient wheat reserves from previous procurements and plans to purchase more this year to stabilise prices, support farmers, and avoid imports.

Reaffirming the govt's commitment, Shah said the priority remains to deliver targeted relief while maintaining fiscal discipline.