The federal cabinet on Tuesday approved the reallocation of savings from declining global prices of petroleum products to funding for infrastructure and agricultural projects in Balochistan.
A statement issued by the Prime Minister’s Office said that Prime Minister Shehbaz Sharif had decided against passing on the benefit of lower petroleum prices to domestic consumers. Instead, he said, the government would utilize the funds to upgrade the N-25 highway connecting Chaman, Quetta, Kalat, Khuzdar, and Karachi to motorway standards. The decision aims to improve travel and logistics in the province, claimed Sharif.
Additionally, he said, further savings would be used to complete Phase 2 of the Kachhi Canal project, which aims to irrigate thousands of acres of land in Balochistan, boosting the province’s agricultural productivity. Balochistan Chief Minister Sarfaraz Bugti, attending the meeting on a special invite, thanked the premier for prioritizing development in the province.
To retain the fuel price for domestic consumers, the cabinet approved an amendment to the Petroleum Products (Petroleum Levy) Ordinance, 1961, based on a proposal by the Petroleum Division. The revision aims to enhance national revenue by raising the levy on petroleum products to Rs. 80/liter. The government was already charging the maximum permissible petroleum levy on petrol, high-speed diesel and high-octane fuel at Rs. 70/liter. After approval of the amended ordinance, the government is now charging nearly Rs. 100/liter in taxes on petrol and diesel.
Additionally, the cabinet granted the Ministry of Finance approval for the Sustainable Investment Sukuk Framework, allowing the government to issue local Islamic bonds targeted at financing environmental sustainability and renewable energy projects. The framework aligns with Pakistan’s Sustainable Development Goals, Nationally Determined Contributions 2021, and the National Adaptation Plan 2023.
The cabinet also approved the submission of a bill to Parliament for the establishment of the National Agri Trade and Food Safety Authority. The proposed body, under the Ministry of National Food Security and Research, aims to strengthen food safety and agricultural trade standards nationwide.