ISLAMABAD: The Centre and the provinces on Friday agreed to immediately roll out a mobile application-based quota system for the provision of fuel for two- and three-wheelers to ensure a targeted subsidy for the low-income strata and minimise the leakage of public money into untargeted avenues.

“The participants agreed to expedite efforts to finalise a targeted subsidy framework using technological solutions, while ensuring continued coordination between the federal and provincial governments”, the Ministry of Finance said after a consultative meeting on the subject with the provinces.

Finance Minister Muhammad Aurangzeb, who presided over a high-level consultative meeting on the petroleum products situation, also highlighted the need to “promote responsible consumption behaviour and ensure that policy responses remain fiscally prudent while maximising relief for the public”, the statement added. The meeting was also attended by officials from the provincial governments.

The meeting commenced with a detailed presentation by the Petroleum Division on the current status of petroleum products’ availability in the country. It was noted with satisfaction that the fuel supply situation remained stable and adequate across the country, it said.

The Ministry of Information Technology and Telecommunication also gave a comprehensive presentation on proposed technological solutions to facilitate a targeted subsidy mechanism for petroleum products, with a focus on transparency and efficient delivery, it added.

The provincial leadership shared their views on the prevailing situation and policy options. Sindh Chief Minister Murad Ali Shah appreciated the federal government’s efforts to maintain uninterrupted fuel availability, while emphasising the importance of behavioural measures to promote fuel conservation, the statement said.

Punjab Senior Minister Marriyum Aurangzeb, meanwhile, emphasised the need to develop multiple policy scenarios in response to the evolving petroleum price situation. She stressed that any reduction in international petroleum prices should be effectively passed on to consumers and highlighted the importance of incorporating behavioural aspects into crisis management to ensure more sustainable consumption patterns.

Khyber Pakhtunkhwa Finance Minister Muzzammil Aslam lauded the efforts of Aurangzeb and Petroleum Minister Ali Pervaiz Malik in effectively managing the oil supply situation. He noted that Pakistan’s management of petroleum supplies had remained comparatively better than that of several countries in the region, the statement said.

According to the handout, the Finance Division briefed the participants on the fiscal situation and noted that limited fiscal space was available, primarily confined to revenues from the petroleum levy. It was emphasised that any relief measures would need to be carefully calibrated to maintain macroeconomic stability.

In his remarks, Aurangzeb underscored that the current situation should be treated as an opportunity to undertake structural reforms rather than a constraint. He emphasised the importance of adopting data-driven decision-making, particularly in the areas of taxation and subsidy design, to ensure transparency, efficiency, and better targeting of relief.

Balochistan Minister for Finance and Mines and Mineral Development Mir Shoaib Nosherwani, the chief secretaries of all four provinces, the petroleum minister, IT Minister Shaza Fatima Khawaja were among those who attended the meeting.

It is worth mentioning that sources told Dawn that the Centre is asking provincial governments to share the additional cost of higher international prices in a bid to avoid a domestic hike in prices of essential petroleum products.

Insiders say the federal government is reaching out to the provinces, particularly Punjab and Sindh, to shoulder the fiscal burden it had been extending to the people across the country by maintaining petrol and diesel rates amid the US-Israeli war on Iran.

These demands have been extended to the provinces in personal interactions and telephonic contacts by the prime minister himself, as well as other cabinet members, a senior government official said.

IT ministry works on procuring phones

Meanwhile, the Ministry of Information Technology and Telecom has invited expressions of interest (EoIs) for the procurement of 24,000 mobile phones, which will be used to operate the app. The EoIs have been floated by the National Information Technology Board (NITB).

The official notice issued in Islamabad stated that the initiative aims to assess indicative pricing and availability of smart Android mobile phones before initiating formal procurement.

The required devices must be brand new, unused, approved by the Pakistan Telecommunication Authority (PTA) and accompanied by a minimum one-year official warranty along with mandatory after-sales support within Pakistan.

The NITB specified that only local manufacturers or assemblers registered under the mobile device manufacturing (MDM) programme and authorised by the PTA are eligible to participate. Vendors have been asked to submit indicative unit prices inclusive of all applicable taxes, along with detailed specifications, make and model information, and company credentials, including regulatory registrations.

As per the outlined requirements, the selected supplier must ensure immediate delivery of 12,000 units within 12 to 18 hours after the issuance of the purchase order, while the remaining 12,000 units are to be delivered within six days.

All devices must be of the same model, and original equipment manufacturers (OEMs) will also be required to preinstall government applications prior to packaging. The submission deadline has been set for March 27 at noon. Responses can be submitted via email or through postal services to the NITB office in Islamabad.

The board clarified that the exercise was not a tender or request for proposal and did not constitute any financial commitment. It added that the purpose of the survey was to identify suitable products for potential procurement at a later stage, if required.

Meanwhile, responding to the query related to the financial burden of the project, IT Minister Shaza Fatima Khawaja said that oil marketing companies (OMCs) would be responsible for purchasing the devices and distributing them to petrol pumps across the country.

The Minister added that the mobile application, which has already been developed by the IT Ministry, is currently in the final stages of testing. Through this system, digital vouchers will be issued to eligible users.

“No public money is being used,” the minister said, adding, “This project also has a long-term benefit whether or not there is a crisis.”

How will the app-based system work?

The plan for using a mobile application-based quota system for fuel distribution involves a fully automated system for both consumers and retail operators.

According to a senior government official, a free, pre-installed app will be provided to retailers, while consumers will use a separate application. He added that each fuel station will be required to maintain at least two mobile devices for system operation.

The Ministry of IT is coordinating with mobile manufacturers to supply specialised devices, with an estimated cost of Rs36,000 per unit and retail pricing around Rs72,000. Petrol stations have been asked to deposit funds into a de­­signated government account for the timely procurement of these devices, with account details to be shared by the Oil and Gas Regulatory Authority (Ogra).

Talking about the quota mechanism and vouchers, an official said vehicle-based quotas will be linked to the user’s app via a registration number and their Computerised National Identity Card (CNIC). However, quota limits will be decided by the relevant cabinet committee.

The users will generate a digital voucher through the app, while the retailers will scan or enter the voucher, leading the system to automatically validate the available quota. For example, if a user requests 20 litres but has a 15-litre quota, only 15 litres will be dispensed. The official said the mechanism was similar to the previously successful Ramazan Package model.

On the financial-pricing side, the government will be providing subsidies for two- and three-wheelers. Retailers and petrol stations will be required to dedicate specific dispensers or nozzles for these vehicles to facilitate subsidised fuel distribution.

All OMCs will also be required to appoint focal persons for each retail site for seamless operations of the scheme and provide their contact details to Ogra for round-the-clock monitoring of the scheme to address consumer complaints. The details of focal persons — including their name, mobile phone numbers and CNIC — will also be available to Ogra.

For implementation and oversight, the details of retailers’ focal persons and contact numbers will also be provided to OMCs and the petroleum division. The IT ministry will provide demos and video tutorials on how to operate the system. In case of emergencies, a dispensation system will be made available for approvals through a designated process.

Additional input from Kalbe Ali