Pakistan announces free public transport, subsidies to offset fuel shock

A day after announcing record increases in fuel prices, Pakistan’s federal and provincial governments unveiled a series of measures aimed at easing the impact on commuters, transporters and farmers.

Prime Minister Shehbaz Sharif directed that train fares would not be increased despite higher diesel prices, according to official details released Friday.

Pakistan Railways had been facing financial pressure after the fuel hike and was considering a 30% increase in fares to meet operational expenses. The prime minister instructed authorities not to raise fares for any class.

Ticket prices for all categories, including economy and air-conditioned classes, will remain unchanged. Freight train charges will also not be increased.

The government will bear an additional burden of PKR 6 billion until June 30 to offset the impact of rising fuel costs.

Railways Minister Muhammad Hanif Abbasi described the decision as a “major relief” for the public and said it would keep rail travel affordable.

Punjab and Islamabad announce free transport

In Punjab, Chief Minister Maryam Nawaz Sharif announced a relief package, including free public transport within cities.

She said passengers would not need to purchase tickets for the Orange Line train, Metro Bus Service, Speedo Bus and Green Electro Bus.

Maryam Nawaz also announced a subsidy of PKR 100 per liter of diesel per acre for farmers and a subsidy for motorcyclists of PKR 100 per liter for up to 20 liters.

She praised Prime Minister Shehbaz Sharif for maintaining petroleum supply and rates for a month despite what she described as a global crisis, and said the government would not leave citizens alone in difficult conditions.

On social media platform X, Interior Minister Mohsin Naqvi said that, on the prime minister’s directives, all public transport in Islamabad would be free for 30 days starting Saturday.

On the directions of the Prime Minister, all public transport in Islamabad will be made free of cost for the general public for the next 30 days, starting tomorrow.

The Ministry of Interior will bear the expenditure of Rs. 350 million for this public relief initiative. Thank you… — Mohsin Naqvi (@MohsinnaqviC42) April 3, 2026

He said the Ministry of Interior would bear PKR 350 million in costs for the initiative.

Sindh rolls out targeted motorcycle subsidy

In Karachi, Sindh Chief Minister Murad Ali Shah announced that registered motorcycle owners would receive PKR 2,000 per month in fuel subsidies under a federal scheme.

He said the subsidy would be disbursed between April 15 and April 20 after registration through the excise department. He urged owners to ensure vehicles are registered in their own names.

Murad said the federal and provincial governments had developed a one-month plan with four components, including shielding motorcycle owners from the price hike.

Record fuel prices and global pressures

On Thursday night, Petroleum Minister Ali Pervaiz Malik announced that petrol prices would rise by PKR 137.3 per liter and diesel by PKR 184.49 per liter.

The new prices are PKR 458.47 per liter for petrol and PKR 520.35 for diesel.

Finance Minister Muhammad Aurangzeb said trucks and goods transporters would receive a monthly subsidy of PKR 70,000, large trailers PKR 80,000, and buses and passenger vehicles PKR 100,000. Small farmers would receive PKR 1,500 per acre.

He said the subsidies would be reviewed next month as the situation was “evolving every hour.”

The government reduced the Petroleum Development Levy on diesel to PKR 0 and increased it on petrol to PKR 160.6 per liter.

Since the United States and Israel launched strikes on Iran on Feb. 28, oil prices have risen sharply. Dubai crude, a benchmark for Pakistan, increased from $71.2 per barrel on Feb. 27 to $114.6 by April 2, according to official figures cited by the government.

The government said it had provided PKR 130 billion in subsidies over three weeks. The International Monetary Fund has called for avoiding energy subsidies, describing them as having high fiscal costs.