Pakistan finalizes Rs160 billion package for Khyber Pakhtunkhwa

A Rs160 billion development and security package for Khyber Pakhtunkhwa has been finalized, Prime Minister Shehbaz Sharif said on Wednesday, the state broadcaster Radio Pakistan reported.

Sharif told a federal cabinet meeting in Islamabad that restoring peace and security in the province remains the government's top priority.

He said the federal government, the armed forces and the province's new provincial administration would work together to eliminate terrorism in the province.

Sharif said Pakistan is continuing its diplomatic efforts to ease tensions in the region, noting that a Pakistani delegation had travelled to Tehran twice in the past two to three weeks.

He said those talks covered reducing regional tensions as well as expanding cooperation between the countries.

On fuel prices, Sharif said a burden of Rs15 per litre on petrol had not been passed on to consumers, because refineries were engaged and asked to share their windfall profits.

He credited the Ministry of Petroleum for its efforts on the issue.

Sharif said the fuel subsidy scheme is being run in a transparent and successful manner, with 15 million people benefiting and Rs28 billion spent so far.

He said the scheme would continue at least until the end of next month.

Sharif said a new mechanism to improve transparency in LPG supply and distribution had brought an end to what he called the LPG mafia.

He assured that the government would make every effort to ensure supplies of LNG, LPG and other energy sources through the winter, despite challenges on shipping routes.

He also said steps would be taken to limit the impact of higher energy prices on consumers.

Khyber Pakhtunkhwa borders Afghanistan and has faced repeated militant attacks in recent years, which has made security a central issue for its government.

Pakistan relies on imported LNG and LPG to meet part of its energy needs, so disruptions on shipping routes can affect supplies and prices.