The Government of Pakistan has announced that all public transport in the federal capital will be free of charge for the next 30 days, effective Saturday, April 4.
The initiative, directed by Prime Minister Shehbaz Sharif, follows a sharp increase in domestic fuel prices driven by the ongoing conflict in the Middle East.
Interior Minister Syed Mohsin Naqvi confirmed the measure via social media on Friday, stating that the Ministry of Interior will bear an estimated expenditure of Rs 350 million to fund the month-long relief program. The move is intended to cushion the general public from the “petrol bomb” effect of recent price adjustments.
Expansion of Relief in Punjab and Sindh
Following the federal announcement, provincial governments moved to implement similar measures to address public concerns and protests:
- Punjab: Chief Minister Maryam Nawaz Sharif announced that commuters in all cities across the province will travel free of charge on state-run services. This includes the Orange Line Train, Metro Bus Service, Speedo Bus, and Green Electric Buses.
- Sindh: In Karachi, Chief Minister Syed Murad Ali Shah unveiled a Rs 55 billion subsidy package. This includes a monthly transfer of Rs 2,000 to registered motorcycle owners and an additional Rs 40,000 subsidy for intra-city buses to prevent fare hikes.
Support for Agriculture and Freight
To ensure food security and stabilize supply chains, the following targeted subsidies were also confirmed:
- Farmers: Cultivators in Punjab will receive a subsidy of Rs 100 per liter of diesel per acre. In Sindh, 336,000 small growers with up to 20 acres of land will receive Rs 1,500 per acre.
- Motorcyclists: A nationwide subsidy scheme will provide registered bike owners Rs 100 off per liter for up to 20 liters of fuel.
Context of Hike and Middle East crisis
The regional conflict involving the U.S., Israel, and Iran has severely impacted the Strait of Hormuz, a critical transit point for 20% of the world’s energy supplies. As a result, Pakistan has seen fuel prices rise by approximately 40% since late February.
While the government attributes the hikes to global market volatility, some public segments and observers point to pressures from a US$1.2-billion IMF agreement reached on March 28. In response to the energy shortage, the government has also moved to a four-day work week for offices and extended school holidays to conserve fuel reserves.