Fuel subsidy to continue until December, says PM Shehbaz

Prime Minister Shehbaz Sharif said on Wednesday that the government had shielded the public from the impact of rising energy prices and would continue its fuel subsidy programme until the end of December. Chairing a meeting of the federal cabinet, the prime minister said Pakistan was making sincere efforts to promote peace and stability in the region. He noted that Field Marshal Syed Asim Munir had visited Iran, while representatives of Pakistan, Saudi Arabia and Türkiye had also held talks with the Iranian leadership in Tehran. He described the discussions as taking place in a cordial and positive atmosphere. Shehbaz said the sharp rise in international oil prices had contributed to regional instability. However, he maintained that the government had taken steps to prevent higher energy costs from placing an additional burden on ordinary citizens. He said the fuel subsidy programme had directly benefited more than 15 million people, with Rs28 billion allocated for the initiative. The scheme would remain in place until the end of December. He added that consumers had also been protected from a Rs15-per-litre increase in petrol prices. The prime minister said the petroleum minister and his team had held discussions with refineries to manage the impact of rising prices. He warned that petrol pumps failing to cooperate with the subsidy programme would face action. Referring to reforms in the energy sector, Shehbaz said the era of the "LNG mafia" had come to an end, adding that the government was now relying on competition and transparency. He said state-owned companies, including Pakistan State Oil (PSO) and Pakistan Refinery Limited (PARCO), were playing a role in managing the sector, while a mechanism had also been introduced for liquefied petroleum gas (LPG). With winter approaching, he said the government was working to maintain adequate supplies of liquefied natural gas (LNG), LPG and oil to meet the country's energy requirements. The prime minister also referred to a Rs160 billion development package for Khyber Pakhtunkhwa, aimed at supporting peace and development in the province. He said restoring stability in the region remained a key government priority and reiterated the commitment to eliminating terrorism. Shehbaz acknowledged the sacrifices made by the people of Khyber Pakhtunkhwa in the fight against militancy. He said terrorism had been eliminated from the country in 2018 but had unfortunately resurfaced. The prime minister also congratulated Finance Minister Muhammad Aurangzeb on assuming the chairmanship of the Group of 24 (G24).