Pakistan Makes Public Transport Free for Month

Pakistan announced that government-run public transport in the capital, Islamabad, will be free for one month, in a bid to ease mounting pressure on citizens following a sharp surge in fuel prices driven by global energy disruptions.

The decision comes amid widespread public frustration, including street protests and long queues at fuel stations, after authorities raised petrol prices by 42.7% to 485 Pakistani rupees per liter. Facing growing backlash, Prime Minister Shehbaz Sharif later rolled back the increase, lowering the price to 378 rupees per liter for at least a month, while pledging further measures to stabilize the situation.

However, diesel prices, critical for transport and agriculture, remain elevated at 520 rupees per liter following a nearly 55% increase, continuing to exert pressure on key sectors of the economy.

Interior Minister Mohsin Naqvi confirmed that the government will bear the cost of the transport subsidy, estimated at around 350 million rupees. The initiative is part of a broader package aimed at containing the economic fallout of rising energy costs.

Regional governments have also moved swiftly. In Punjab, Chief Minister Maryam Nawaz Sharif announced similar measures, including fare exemptions for public transport and targeted support for bus and trucking operators. In Karachi and across Sindh, authorities introduced subsidies for motorcyclists and small-scale farmers.

The crises unfolds against the backdrop of escalating geopolitical tensions involving the United States, Israel, and Iran, which have disrupted global energy flows, particularly through the Strait of Hormuz, a route that carries roughly one-fifth of the world’s energy supply.

To curb fuel consumption, Islamabad has also introduced austerity measures, including reducing the workweek for some government institutions to four days, extending school holidays, and partially shifting to remote education.

Classified as a lower-middle-income country, Pakistan faces acute economic challenges, with nearly a quarter of its population living below the poverty line, according to the World Bank. Recent protests in Lahore have underscored public anger, with demonstrators describing the fuel price hikes as a “shock” and demanding immediate relief.

Meanwhile, the International Monetary Fund has warned that fragile economies like Pakistan are under dual pressure from rising energy prices and ongoing supply chain disruptions. The Fund recently reached a preliminary agreement with Islamabad on a new $1.2 billion support package, aimed at stabilizing the economy and restoring investor confidence.