Pakistan initiates digital payouts to transport sector to counter fuel shock

Pakistan’s Prime Minister Shehbaz Sharif has said the government has started to distribute relief funds to public transport and freight operators through digital wallets, as it seeks to cushion the impact of sharply rising fuel costs, Dawn reports.

The announcement followed a review meeting on petroleum reserves and relief measures, where officials said subsidies were now being transferred digitally to operators of buses, wagons, trucks and other freight vehicles under what was described as a more transparent system.

Islamabad aims to ensure that support reaches economically vulnerable groups, with funds channelled directly to eligible recipients rather than through third parties. Savings generated through austerity measures are being redirected towards public relief, according to the prime minister’s office.

Officials told the meeting that Pakistan retains adequate petroleum reserves to meet current demand. The review also covered progress on relief initiatives introduced in response to higher global oil prices.

Fuel costs across Pakistan have surged as the conflict involving Iran drags on which prompted the government to raise petrol and diesel prices by PKR55 ($0.19) per litre on March 6. A broader austerity package followed just three days later and despite earlier resistance to further increases at the pump, authorities later imposed steep hikes of 43% for petrol and 55% for high-speed diesel, citing international market pressures.

As a result, targeted subsidies have been introduced alongside the price rises. Diesel-dependent inter-city and freight transport operators are to receive PKR100 per litre (about $0.36), with rates subject to monthly review. Trucks transporting 80–85% of food supplies meanwhile will receive PKR70,000 per month ($251), while large transport vehicles will be allocated PKR80,000. Inter-city public service vehicles will also receive PKR100,000 monthly to help stabilise fares, Dawn says.