According to sources on Wednesday, the federal government has decided to cut Rs100 billion from the development budget in an effort to help control the fiscal deficit.
There will be no increase in the prices of petroleum products, according to the information provided by sources.
The government is considering reallocating these funds toward emergency relief instead of increasing petroleum prices, sources added.
As a result, the development budget for the current fiscal year may be reduced from Rs1 trillion to around Rs900 billion.
Sources further said that funds for all ongoing development projects are likely to face a 10 per cent reduction as part of these adjustment measures.
Separately, the government is preparing to introduce a modern digital system for rationing petroleum products, reports on Tuesday suggested.
According to the details, a special mobile application is being developed that citizens will be able to download on their phones.
Read more: Govt to fix petrol quota for every citizen, app in preparation
Additionally, the dispute over the pricing mechanism of petroleum products in the country has also intensified.
Petroleum dealers postpone nationwide strike
The nationwide strike by petroleum dealers on March 26, 2026, originally planned to disrupt petrol pump operations, has been postponed following negotiations with the government, according to reports on Wednesday.
#Pakistan: Petroleum dealers strike Postponed. #ChampAlertsOnTheGo #CAOTG
— Shaheryar Hassan (@shaheryarhassan) March 25, 2026
A nationwide strike by petroleum dealers on 26/3/26, originally planned to disrupt petrol pump operations, has been postponed following negotiations with the government. Petroleum product supply will…
Earlier, the All Pakistan Petrol Pump Owners Association (APPPOA) expressed reservations over the pricing mechanism of petroleum products in the country.
The association wrote a letter to the Petroleum Minister demanding that they be taken into confidence on the pricing mechanism.
Vice Chairman Noman Butt says that 15,000 petrol pump owners across the country have serious reservations about the current mechanism.
The letter further states that no further crisis should be created in view of the current situation.
The association has warned that if their demands are not accepted, petrol pumps may be closed.
The letter also states that the Petroleum Minister will be responsible for the situation that arises in such a case.
Yesterday, Nasir Hussain Shah, the Provincial Minister of Sindh for Energy, said that the Sindh government is considering the option of imposing a smart lockdown in the province.
He said this while he was speaking to the media. He said that daily meetings are being held to review the current situation.
The minister also said that the fuel quota for government vehicles has already been reduced by 60 per cent.
Read more: Sindh govt considering smart lockdown, says Nasir Hussain Shah
