Summary The Finance Division said the $97 million were arranged through various expenditure reduction measures that were implemented within the federal government and deposited in the “PM Austerity Fund.”
KARACHI (Web Desk) – The government has issued a tranche of Rs27 billion [$97 million] for the Oil and Gas Regulatory Authority (OGRA) to settle price differential claims arising from Islamabad’s decision to shield consumers from the impact of rising oil prices due to the Middle East conflict, the Finance Division said on Wednesday.
“On the directions of the prime minister, OGRA has been provided the first tranche amounting to Rs27 billion, from the Prime Minister’s Austerity Fund, to settle the Price Differential Claims arising from the Government’s decision to shield the consumers from the impact of rising oil prices in the international market,” the Finance Division said.
The Finance Division said the $97 million were arranged through various expenditure reduction measures that were implemented within the federal government and deposited in the “PM Austerity Fund.”
“Government is also considering additional cost-cutting measures to ensure that the relief to the public is provided while staying within the budget and identifying additional savings,” the statement concluded.
The earlier hike in fuel prices this month by Pakistan pushed petrol prices above Rs320 ($1.14) and diesel close to Rs336 ($1.20) per liter.
The move added to inflationary pressures by raising transport, food and retail costs during the peak Eid Al-Fitr season.
Pakistan’s inflation has eased to around 6–7 percent in recent months after peaking at 38 percent in 2023, but fuel costs continue to drive broader price increases across the economy.
Financial analysts have warned that if the war in the Middle East continues for a longer period of time, it could negatively impact Pakistan’s balance of payments, considering energy imports will further increase and the country’s exports could be adversely affected.
