Finance Minister chairs consultative session on petroleum prices, subsidy reforms

ISLAMABAD, Mar 27 (APP): Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb here on Friday chaired a high-level consultative meeting to review the petroleum products situation, expressing satisfaction over the country’s stable and adequate fuel supply.

The meeting was held in line with the directions of the President and the Prime Minister, according to press release issued by the Finance Ministry.

The Petroleum Division briefed the participants on the current status of petroleum products’ availability in the country and it was noted with satisfaction that the fuel supply situation remained stable and adequate across the country.

The Ministry of Information Technology and Telecommunication also gave a comprehensive presentation on proposed technological solutions to facilitate a targeted subsidy mechanism for petroleum products, with a focus on transparency and efficient delivery.

The provincial leadership shared their views on the prevailing situation and policy options. Chief Minister Sindh, Syed Murad Ali Shah, appreciated the efforts of the federal government in maintaining uninterrupted fuel availability, while emphasizing the importance of behavioral measures to promote fuel conservation.

Punjab Senior Minister Marriyum Aurangzeb, representing the Punjab government, emphasized the need to develop multiple policy scenarios in response to the evolving petroleum price situation. She stressed that any reduction in international petroleum prices should be effectively passed on to consumers and highlighted the importance of incorporating behavioral aspects into crisis management to ensure more sustainable consumption patterns.

Khyber Pakhtunkhwa Finance Minister Muzzammil Aslam lauded the efforts of Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and Federal Minister for Petroleum, Ali Pervaiz Malik, for effectively managing the oil supply situation. He noted that Pakistan’s management of petroleum supplies has remained comparatively better than that of several countries in the region.

Balochistan Minister for Finance and Mines & Mineral Development, Mir Shoaib Nosherwani, also shared his views during the meeting.

The Finance Division briefed the participants on fiscal situation and noted that limited fiscal space is available, primarily confined to revenues from the petroleum levy. It was emphasized that any relief measures would need to be carefully calibrated to maintain macroeconomic stability.

In his remarks, the finance minister underscored that the current situation should be treated as an opportunity to undertake structural reforms rather than a constraint. He emphasized the importance of adopting data-driven decision-making, particularly in the areas of taxation and subsidy design, to ensure transparency, efficiency, and better targeting of relief.

The finance minister also highlighted the need to promote responsible consumption behaviour and ensure that policy responses remain fiscally prudent while maximizing relief for the public.

The participants agreed to expedite efforts to finalize a targeted subsidy framework using technological solutions, while ensuring continued coordination between the federal and provincial governments.

Other who attended the meeting included; chief secretaries of all four provinces; Federal Minister for Petroleum, Ali Pervaiz Malik; Federal Minister for Information Technology and Telecommunication, Ms. Shaza Fatima Khawaja; Federal Secretaries of Finance, Petroleum, and Information Technology & Telecommunication; as well as senior officials, including the Chairman NADRA.