Pakistan Rolls Back Petrol Price Hike Amid Protests
Analysis based on 34 articles · First reported Apr 02, 2026 · Last updated Apr 05, 2026
The initial drastic fuel price hike in Pakistan, driven by the US-Israel war on Iran and global energy prices, caused significant public unrest and negative market sentiment. The subsequent partial rollback of petrol prices and introduction of subsidies by the government, along with a $1.2 billion package from the International===International Monetary Fund, aim to stabilize the economy and alleviate public burden, potentially leading to a slight positive shift in market confidence for Pakistan.
Pakistan's government initially implemented a drastic fuel price hike, with petrol increasing by 42.7% and diesel by 54.9%, citing spiking global energy prices due to the US-Israel war on Iran. This decision led to widespread street protests across the country. In response to public outrage, Prime Minister Shehbaz Sharif announced a partial rollback of the petrol price, setting it at 378 rupees per litre for at least one month, though diesel prices remained unchanged. Additionally, the government introduced austerity measures, including federal cabinet members forgoing salaries, and subsidies for public transport in Islamabad and Punjab, as well as for motorcyclists and small farmers in Sindh. Interior Minister Mohsin Naqvi confirmed free public transport in Islamabad for 30 days, costing the government 350 million rupees. Chief Minister Maryam Nawaz Sharif implemented similar measures in Punjab. The International===International Monetary Fund, which recently agreed to a $1.2 billion package for Pakistan, warned vulnerable economies face pressure from high energy prices and supply chain issues. Other Asian countries like Bangladesh have also increased fuel prices.
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