The fuel subsidy in Pakistan is staying, for now. A foreign ministry statement after a meeting chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar confirmed the government will press on with its Rs75 billion fuel relief programme, days after the IMF said the scheme “should be phased out promptly, given its high cost and broad targeting”. Officials put the number benefiting at more than nine million people. The figure nobody has reconciled is the one to start with: at the petroleum minister’s own cost estimate, Rs75 billion funds about two and a half to three months of it.
Government Confirms Continuation of the Fuel Subsidy in Pakistan
Rs75 billion — and how long it actually lasts
Rs75 billion has been approved for the programme. Separately, Petroleum Minister Ali Pervaiz Malik said last month it costs Rs25 billion to Rs30 billion a month. Put those two official numbers together and the allocation covers roughly 2.5 to 3 months of running — our arithmetic, not a government statement, and nobody has publicly reconciled the two. That is no prediction that the scheme stops in three months; it is the question to ask whenever Rs75 billion is quoted as though it settles the matter.
What has, and has not, been confirmed
Confirmed: the programme continues, and officials say more than nine million people are benefiting. Not confirmed: any end date, any change to eligibility, or any response to the IMF’s recommendation the foreign ministry statement did not address it. Note too that “the scheme will continue” and “payments are reaching everyone eligible” are different claims, and only the first has been made.
How the Rs2,000 and Rs3,000 Figures Actually Work
This is the most misunderstood part of the scheme. The relief is Rs100 off per litre, capped by volume — not a cash payment. For two- and three-wheelers the cap is 20 litres a month, which is where Rs2,000 comes from; for cars up to 800cc it is 30 litres, hence Rs3,000. You get the full amount only if you buy the full volume.
The latest reporting describes the same entitlement in instalments: a Rs500 weekly petrol token for motorcycle and rickshaw users, and Rs100 a litre on up to 10 litres every 10 days for small cars. Those reconcile with the ceilings exactly Rs500 at Rs100 a litre is five litres a week, or 20 litres over four weeks; 10 litres every 10 days is 30 a month. Same scheme, described two ways.
Who Is Eligible for Pakistan’s Fuel Relief Scheme?
Three groups: motorcycles and other two-wheelers, rickshaws and three-wheelers including Qingqi, and cars with engines up to 800cc. The engine-size limit applies to cars only. There is also a registration-date condition that catches people out per our coverage of the fuel relief scheme for older bikes and rickshaws, two- and three-wheelers have been reported as qualifying only if registered after 1 January 2006. Check the registration date on your documents, not the model year.
Registration has run through a free SMS to 9771, with the format in our guide to fuel subsidy scheme registration. One caution: the pump-level mechanism was still being worked out through September, so confirm the current route from an official notification before relying on any instruction, including ours.
Beware of Fake Registration Pages
Registering is free, and anyone charging a fee is defrauding you. Dealers have already warned about fraud and delays around this scheme, including fake registration pages and “786 subsidy check” sites harvesting CNIC and bank details or charging for registration. Never pay to register, never enter bank details to check eligibility, and never share your CNIC on a page reached from a forwarded link. A free scheme has no legitimate paid shortcut.
Why the IMF Wants the Fuel Subsidy Phased Out
The IMF’s position came in its statement of 8 October 2026 announcing a staff-level agreement with Pakistan. Mission chief Iva Petrova said the fuel support scheme “should be phased out promptly, given its high cost and broad targeting”, and that any future fuel support, should oil prices surprise on the upside, “should be limited, time-bound, targeted using established social assistance programs, and accommodated within the FY27 budget envelope”.
Read the objection carefully: it is cost and breadth, not the principle of helping low-income motorists. The IMF wants targeting through existing social assistance systems rather than a scheme open to anyone with a qualifying vehicle. The agreement covers about $1.0 billion under the Extended Fund Facility and $210 million under the Resilience and Sustainability Facility — around $1.21 billion, taking cumulative disbursements to about $5.7 billion. It remains subject to IMF Executive Board approval. The IMF’s Pakistan country page carries the formal documents.
Will Pakistan’s Fuel Subsidy Continue or End?
Three things are true at once, and keeping them apart is the whole job. The government says the programme continues. The IMF has recommended it be phased out promptly — a recommendation, which by itself ends nothing. And the allocation funds a few months, not a year, at the minister’s own cost figure. Our reading is that the pressure point is not whether relief survives but what shape it takes: the IMF’s wording points at a narrower, time-bound, socially targeted scheme. If you are eligible, register through the free official route and use the entitlement now rather than assuming the terms will hold. Watch for an official notification changing eligibility or volumes that, not a headline, tells you the terms have moved. Our latest petrol prices in Pakistan page tracks the rates the discount applies against.
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