CM extends lifeline amid fuel spike

Sindh unveils Rs2.15b transport relief, Rs3b farmer package

KARACHI:

Sindh Chief Minister Murad Ali Shah on Wednesday approved a targeted public transport subsidy programme and sanctioned additional financial assistance for small farmers as part of a comprehensive strategy to cushion the impact of rising global fuel prices.

Chairing a meeting at his office, CM Shah reviewed measures aimed at keeping public transport fares affordable and ensuring the sustainability of the sector amid a sharp increase in petrol and diesel prices.

The meeting was informed that due to the prevailing global geopolitical situation, diesel prices have surged by over Rs244 per litre and petrol by Rs120 per litre, posing a risk of fare hikes and a potential decline in ridership, particularly among low-income segments.

"The government will not allow the burden of increased fuel prices to be passed on to the common man," the chief minister said, adding that the subsidy would help maintain fare levels and ensure uninterrupted transport services across the province.

Under the proposed mechanism, the federal and provincial governments will share the subsidy burden, while transport operators will be provided financial support based on vehicle type and route length, subject to the condition that fares are not increased.

Officials briefed the meeting that Sindh's transport network comprises over 10,800 vehicles operating on 224 routes, serving nearly 1.9 million passengers daily. The estimated monthly subsidy stands at Rs2.15 billion, covering both urban and inter-district operations.

To ensure transparency, the subsidy will be disbursed through a digital, app-based system, incorporating verification of route permits, vehicle fitness and bank accounts. Payments will be made directly to operators, with monitoring through inspections and passenger feedback. Safeguards such as OTP verification, fuel benchmarks and periodic reviews will also be in place.

Separately, the chief minister approved a Rs3 billion subsidy for 366,000 small farmers to mitigate the impact of rising diesel costs during the wheat harvesting season.

He directed authorities to launch the programme immediately, stressing that small farmers - owning between one and 25 acres - are the backbone of the rural economy and must be protected from financial strain.

CM Shah said the government was shifting from untargeted subsidies to a more efficient and transparent system aimed at delivering relief to the most deserving segments, including transporters, farmers and daily commuters, while maintaining fiscal discipline.

He also directed all relevant departments to expedite implementation and ensure effective coordination for timely execution of the initiatives.