Prime Minister Shehbaz Sharif has said the government’s fuel subsidy scheme will continue until the end of December 2026. Speaking at a federal cabinet meeting on Wednesday, 4 November 2026, he said the measure is designed to protect the public from rising global oil prices, and that the scheme is progressing well.
Sharif also said Pakistan is pursuing diplomatic efforts to support peace and stability in the region and to ease tensions. He linked the increase in international oil prices largely to instability in the Middle East, a region he did not describe in further detail.
Fuel subsidy reach, costs and petrol station irregularities
According to the prime minister, around 15 million people have used subsidy tokens. Based on an average household size of five, he estimated that roughly 75 million people are benefiting from the scheme. He added that the government had provided around Rs28 billion in subsidies under the fuel relief programme so far.
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He said the government had stopped a Rs15 per litre increase in petrol prices from reaching consumers after international oil prices rose last Friday. The petroleum minister and his team, he said, held talks with refineries and asked them to absorb the extra cost instead of passing it on to the public.
Sharif described the scheme as transparent and successful, but acknowledged reports of irregularities at some petrol stations. He instructed the petroleum minister to shut down any stations found involved in malpractice and to take firm action against those responsible.
Diplomacy in Tehran and LPG import overhaul
The prime minister said Pakistan is playing an active role in efforts to restore peace. A Pakistani delegation visited Tehran twice in the previous week, he said, and Field Marshal Asim Munir also travelled to the Iranian capital. Senior officials from Pakistan, Saudi Arabia, Iran and Turkiye held discussions there.
Sharif said talks on a possible agreement between Pakistan, Saudi Arabia and Turkiye had taken place in a positive atmosphere. The aim, he said, is to promote regional cooperation and harmony.
On energy imports, he said the government had ended the influence of what he called the Liquefied Natural Gas (LNG) import mafia, which he accused of earning billions of rupees through imports over several decades. Liquefied petroleum gas (LPG) imports and management, he said, are now handled through a more competitive and transparent system involving state-owned entities, including Pakistan State Oil (PSO) and Pakistan Refinery Limited (PARCO).
Under the new arrangement, LPG imports will be carried out through competitive processes, while locally produced LPG will be auctioned. Sharif said any resulting profits would be passed on to the public through subsidies. He also said the government is holding meetings every two to three days to review challenges caused by disruptions to maritime routes and their possible effect on energy supplies. These meetings are examining the availability and distribution of fuel, LPG and other energy resources ahead of the winter season.
Development package and security measures in Khyber Pakhtunkhwa
Turning to Khyber Pakhtunkhwa (KP), where the federal government recently imposed emergency and governor’s rule, Sharif said a development package of Rs160 billion has been announced for the province. He said security would be given priority.
The prime minister said a large number of militants had been killed in the province. He vowed that federal and provincial authorities would work together with security agencies to eliminate terrorism. He added that KP and Balochistan had faced terrorism for an extended period, and recalled that terrorism had been largely eliminated by 2018 but had unfortunately resurfaced.
Sharif also congratulated the nation on Pakistan’s successful air-to-air missile test, which was conducted a day earlier.
