The federal and provincial governments have agreed to develop a working framework for a possible targeted petroleum subsidy mechanism, following high-level talks held at the Finance Division in Islamabad on Tuesday.
The framework will be shared with all stakeholders for further input, while provinces will continue refining their proposals with the goal of reaching a practical, consensus-based solution.
The meeting, chaired by Finance Minister Muhammad Aurangzeb, was called to discuss how Pakistan could move away from blanket fuel subsidies — which benefit all consumers regardless of income — toward a system that directs support specifically to low-income households.
Provincial governments presented their perspectives on the matter, reflecting differences in administrative capacity, available data, and local economic conditions. Officials discussed several possible delivery mechanisms, including existing government databases, digital platforms, and cash transfer systems such as the Benazir Income Support Programme.
The talks also stressed the need for transparency and accountability in designing any future subsidy arrangement, as well as a balance between a unified national approach and flexibility for each province to execute it in its own way.
Finance Minister Aurangzeb described the meeting as part of ongoing consultations aimed at building a coordinated and sustainable approach to petroleum pricing reform.
The meeting was attended by Punjab Chief Minister Maryam Nawaz Sharif, Sindh Chief Minister Syed Murad Ali Shah, and Balochistan Chief Minister Mir Sarfraz Ahmed Bugti, along with KP Finance Minister Muzzammil Aslam and the chief secretaries of all four provinces. Federal ministers Ali Pervaiz Malik, Ahad Khan Cheema, and Shaza Fatima Khawaja, as well as senior officials from relevant ministries and regulatory authorities, also participated.
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