Winning Bizness Desk
Mumbai. The ongoing conflict involving Iran, Israel and the United States is beginning to impact Pakistan’s fragile economy, prompting emergency measures by the government. In a significant austerity move, the salaries of federal cabinet ministers have been suspended for the next six months. The decision comes amid a steep rise in fuel prices that has triggered widespread concern and visible public distress across the country.
Sharp hike and partial rollback in fuel rates
Just two days before the announcement, petrol prices in Pakistan were increased by 137 Pakistani rupees per litre, while high-speed diesel saw a sharper hike of 184 rupees. However, following strong protests across several cities, the government rolled back petrol prices by 80 rupees on Friday. Despite this relief, petrol is still priced at 378 rupees per litre, while diesel remains unchanged at an elevated rate of 520.35 rupees per litre.
Public anger visible at fuel stations nationwide
The sudden spike in fuel costs led to chaotic scenes, particularly in Karachi, where long queues of vehicles were seen outside petrol pumps on April 2. The surge in prices has not only burdened daily commuters but also raised concerns about inflationary pressure on essential goods and transport services. Citizens expressed anger over the abrupt hike, forcing the government to act swiftly to contain the fallout.
Key relief measures announced for public
In his late-night address to the nation, Prime Minister Shehbaz Sharif outlined several steps aimed at easing the burden on citizens. He said the petrol levy had been reduced by 80 rupees to provide immediate relief, adding that the revised prices would remain stable for at least a month.
- Ministers’ salaries withheld for six months
- Petrol levy reduced by 80 rupees
- Fuel prices to remain stable for one month
- Government provided subsidy worth 129 billion rupees
Global oil crisis linked to Middle East tensions
Sharif attributed the price surge to escalating tensions in West Asia and disruption in oil supply routes, particularly due to concerns around the Strait of Hormuz. He said international crude oil prices have been rising लगातार over the past three weeks, putting pressure on import-dependent economies like Pakistan. The government, he added, had absorbed much of the burden by extending subsidies instead of passing the entire increase to consumers.
Support measures for farmers, bikers and rail passengers
Beyond fuel price cuts, the government also announced targeted subsidies for vulnerable groups to cushion the economic blow.
- Motorcycle users to get subsidy of 100 rupees per litre
- Small farmers to receive 1,500 rupees per acre assistance
- Pakistan Railways economy class fares to remain unchanged
Crude oil prices in the global market have surged sharply, with Brent crude nearing 110 dollars per barrel, reflecting a rise of around 7 percent. The ripple effects are being felt across countries, including India, where the government had earlier reduced excise duty on petrol and diesel by 10 rupees each to stabilise domestic prices.
