Federal Government to Provide Fuel Subsidies via Digital Wallets and Bank Accounts
The federal government has confirmed that fuel subsidies for vehicles will be disbursed directly through digital wallets or conventional banking channels, without the need for any new mobile application. Only vehicles registered with the Excise and Taxation Officer (ETO) will be eligible for the subsidy, an official source told The Nation.
“The process is straightforward. Vehicle owners registered with the ETO will receive the subsidy directly in their digital wallet or bank account,” the source explained.
Under the targeted subsidy programme, the Ministry of Information Technology will collect registration data from provincial ETOs. This data will then be shared with the State Bank of Pakistan to facilitate processing and disbursement. No separate app is required to receive the subsidy.
To qualify for the subsidy, vehicle registration with ETOs is mandatory. The subsidy will be credited directly to the recipient’s national ID-linked bank account, based on ETO records. Provincial authorities will manage subsidies for motorcycles and farmers, while the federal government will oversee national-level transport services, including trucks, buses, and other large vehicles. The federal programme will also cover two-wheelers and public transport in Islamabad Capital Territory, Gilgit-Baltistan, and Azad Jammu & Kashmir.
The initiative aims to cushion the impact of rising global fuel prices through a targeted approach, benefiting two-wheelers, trucks, public transport, and farmers. Provinces have agreed to contribute approximately Rs200 billion, following the National Finance Commission (NFC) pattern, to fund subsidies over three months.
Last week, Finance Minister Muhammad Aurangzeb announced the following support measures:
- Motorcycles: Rs2,000 per month (Rs100 per liter on up to 20 liters) for three months
- Food transport vehicles: Rs70,000 per month
- Large trucks: Rs80,000 per month
- Public service buses: Rs100,000 per month
- Farmers: Rs1,500 per acre
The federal government has already begun disbursing subsidies through digital wallets, with around 100,000 recipients benefiting so far.
This targeted subsidy programme underscores the government’s commitment to supporting transport operators and farmers while ensuring a streamlined, app-free digital transfer system.
