[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]ISLAMABAD: Prime Minister Shehbaz Sharif stated on Sunday that as part of a relief package, low-income individuals will receive a Rs50 per litre petroleum subsidy. Motorcycles, rickshaws, 800cc autos, and other small vehicles will be eligible for the subsidy.
During a review meeting on the relief package, the premier stated that the programme will be implemented as quickly as possible, and that a thorough strategy will be developed in collaboration with relevant departments to ensure its execution.
He stated that low-income people generally utilise motorcycles, rickshaws, and tiny automobiles, and that the subsidies will help those in need.
Despite economic difficulties, the government is committed to assisting the needy, according to the prime minister.
Also Read: Govt raised petrol price by Rs5 per litre.
Minister for Finance Muhammad Ishaq Dar, Adviser to the Prime Minister Ahad Cheema, Special Assistant to the Prime Minister Tariq Bajwa, Secretary Finance, Secretary Petroleum, and other senior officials attended the review meeting.
Musadik Malik, Minister of State for Petroleum, educated guests on the approach for giving the subsidy.
Earlier reports said that the government was working on a Rs120 billion cross-subsidy plan to help the poor who own motorcycles but cannot pay the expensive fuel.
According to news, the government proposes to charge the rich, who drive costly cars, Rs15 more per litre of petrol to cover the expense of fuel subsidies for the poor. According to sources, PM Shehbaz has tasked Musadik Malik with developing a mechanism for supplying subsidised gasoline to underprivileged motorcycle owners.
During a recent cabinet meeting, the premier requested more information from the state minister, who responded that many discussions had taken place and a cross-subsidy system had been developed.
According to sources, it was revealed at the talks that a total cross-subsidy of Rs120 billion was required to provide cheaper gasoline to motorcyclists. Those who own costly cars would fund the cross-subsidy.
Implementation difficulties
But, according to sources, the proposal is likely to encounter major execution challenges. One of the challenges is that half of the 6 million motorcycles in the country are not registered.
Motorbikes must be registered to receive the cross-subsidy, according to the plan finalised by the state petroleum minister. Second, bikes must be linked to the State Bank of Pakistan (SBP) in order to receive a one-time password (OTP) for receiving subsidised petrol at filling stations.
Furthermore, the subsidy would be paid to qualified and registered Benazir Income Support Programme motorcycle owners (BISP).
Unfortunately, the majority of motorcycle owners do not have digital access to banks and are not registered with the BISP. Such hiccups are a source of anxiety for policymakers, who fear that the intended programme may fail.
There are also concerns that petroleum merchants, the majority of whom have been implicated in fuel hoarding, will not pass on the entire advantage of the cross-subsidy to motorcycle owners and will instead charge higher rates.[/vc_column_text][/vc_column][/vc_row]
