Islamabad – 16 April: The federal government said fuel prices will stay unchanged for the fortnight starting April 16. Instead, it decided to redirect Rs300 billion in petroleum savings to Balochistan development projects.
The cabinet, led by PM Shehbaz Sharif, approved using the fuel savings for Balochistan. Moreover, Funds to dualize the N-25 and complete Kachhi Canal Phase-II. Petrol will remain priced at Rs254.63 per litre, and high-speed diesel at Rs258.84 per litre.
To address infrastructure gaps, the government will upgrade the N-25, often called the “killer road,” to motorway standards. The highway connects Karachi, Khuzdar, Kalat, Quetta, and Chaman. Officials confirmed the project, approved in FY2022-23, had stalled earlier due to lack of funds.
Phase-II of Kachhi Canal will irrigate barren lands and boost Balochistan’s agriculture, officials said. The initiative is part of a broader federal push to uplift Balochistan’s economy through sustainable infrastructure.
The cabinet also endorsed the solarization of agricultural tubewells in Balochistan, with the federal government covering 70% of the cost. Moreover, the cabinet amended the Petroleum Levy Ordinance (1961) to raise revenue through fuel levies.
Separately, it approved a Sukuk bond framework and a bill to form a national food and agri-trade authority.
Balochistan Chief Minister Sarfaraz Bugti, attending the meeting as a special invitee, thanked the premier for what he called an “unprecedented step” in prioritizing the region’s long-neglected development needs.
However, the decision has drawn criticism from economists and opposition leaders, who argue that the government is imposing an indirect tax on the public by withholding petroleum price relief. Critics argue the levy adds pressure on citizens already burdened by taxes.
“This amounts to a mini-budget,” a senior opposition figure stated. “Balochistan had a cash surplus of Rs91.4 billion by December 2024, and the federal PSDP already includes Rs1,100 billion. There was no justification for denying consumers the relief they deserve.”
Experts said global oil drops should have led to a reduction of up to Rs8 per litre for consumers. They urged the government to finance development through parliamentarians’ discretionary budgets and existing federal allocations rather than increasing the cost of living.
Disclaimer: This report on government allocates fuel savings for Balochistan, is based on official government statements & public feedback.
