Panic buying sees Pakistan face ‘artificial shortage’ of diesel ahead of IMF loan review

Pakistani commuters wait for their turn to fill vehicles at a gasoline station in Islamabad, Pakistan. (AFP/File)
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Updated 25 April 2022
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Panic buying sees Pakistan face ‘artificial shortage’ of diesel ahead of IMF loan review

  • Islamabad has asked the world body to extend $6 billion pact, boost funding by $2 billion
  • Government expected to roll back popular fuel subsidies to meet lender’s demands

ISLAMABAD: Panic buying across Pakistan is fueling an “artificial shortage” of diesel, the Ministry of Energy said on Monday, as Islamabad is expected to roll back fuel price subsidies amid the government’s efforts to revive its $6 billion loan program from the International Monetary Fund.

Pakistan, facing economic challenges after a new government took over this month from ousted Prime Minister Imran Khan, has asked the IMF to extend its loan program and increase the funding by an extra $2 billion to help ease difficulties in financing, the country’s Finance Minister Miftah Ismail has said.

The South Asian country has agreed to roll back subsidies to the oil and power sectors, the IMF said in a statement, ahead of a mission visit next month “to resume discussions” on the loan program, when officials are expected to thrash out details on the bailout package.

The likely increase in diesel prices has fueled a shortage across Pakistan, with farmers among those struggling to secure enough fuel as the country is in the peak of the wheat harvesting season. The Ministry of Energy said Pakistan has enough diesel supply.

“This is an artificial shortage as Pakistan has enough diesel reserves available to fulfill the demand,” Rabbiya Khalid, a spokesperson for the ministry, told Arab News.

“People should stop panic buying. There is absolutely no shortage of diesel in Pakistan.”

The shortage has also hit the country’s most populous Punjab province, where wheat harvesting has been delayed as a result.

“The diesel shortage is hurting the farmers and delaying the wheat harvesting,” Mian Muhammad Umair Masood from the Pakistani farmers’ association, Pakistan Kissan Ittehad, told Arab News.

Masood said the delay in wheat harvesting would impact the sowing of other crops, including cotton, maize and rice, and called on the government to continue the fuel subsidy to support the farmers.

“The oil shortage at this crucial time could lead to food insecurity in the country,” he said. “Diesel is mainly used in agriculture, and a fuel subsidy to farmers means additional crop yield and food security.”

The new government, promising populist measures, had kept fuel prices unchanged this month to provide relief to its citizens. But aid from the world lender appears critical as Pakistan grapples with Asia’s second-fastest inflation rate, and as its foreign exchange reserves fell to less than two months of import cover.

The IMF suspended its $6 billion loan to Pakistan in 2020, after Pakistan failed to meet its lending conditions. The plan was revived last year under tougher conditions agreed to by Khan’s administration, including raising oil prices and electricity tariffs, but the increases were rolled back in response to public anger over rising living costs.

Pakistan revises prices of petroleum products every 15 days, and the next revision is scheduled for April 30. It is expected that fuel prices would increase to fulfill the IMF’s demands.

Samiullah Tariq, head of research at Pakistan Kuwait Investment, said that sufficient stock of the diesel was available in the country, and the shortage was “temporary” as oil company dealers expected a price hike by the end of this month.

“The government should announce the revised oil prices as early as possible to end this artificial shortage,” Tariq told Arab News.


Afghanistan says it thwarted Pakistani airstrike on Bagram Air Base as fighting enters fourth day

Updated 01 March 2026
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Afghanistan says it thwarted Pakistani airstrike on Bagram Air Base as fighting enters fourth day

  • The fighting has been the most severe between the neighbors for years
  • Pakistan accuses Taliban government of harboring militant groups that stage attacks against it

KABUL: Afghanistan thwarted attempted airstrikes on Bagram Air Base, the former US military base north of Kabul, authorities said Sunday, while cross-border fighting between Pakistan and Afghanistan stretched into a fourth day.
The fighting has been the most severe between the neighbors for years, with Pakistan declaring that it’s in “open war” with Afghanistan.
The conflict has alarmed the international community, particularly as the area is one where other militant organizations, including Al-Qaeda and the Daesh group, still have a presence and have been trying to resurface.
Pakistan accuses Afghanistan’s Taliban government of harboring militant groups that stage attacks against it and also of allying with its archrival India.
Border clashes in October killed dozens of soldiers, civilians and suspected militants until a Qatari-mediated ceasefire ended the intense fighting. But several rounds of peace talks in Turkiye in November failed to produce a lasting agreement, and the two sides have occasionally traded fire since then.
On Sunday, the police headquarters of Parwan province, where Bagram is located, said in a statement that several Pakistani military jets had entered Afghan airspace “and attempted to bomb Bagram Air Base” at around 5 a.m.
The statement said Afghan forces responded with “anti-aircraft and missile defense systems” and had managed to thwart the attack.
There was no immediate response from Pakistan’s military or government regarding Kabul’s claim of attempted airstrikes on Bagram or the ongoing fighting.
Bagram was the United States’ largest military base in Afghanistan. It was taken over by the Taliban as they swept across the country and took control in the wake of the chaotic US withdrawal from the country in 2021. Last year, US President Donald Trump suggested he wanted to reestablish a US presence at the base.
The current fighting began when Afghanistan launched a broad cross-border attack on Thursday night, saying it was in retaliation for Pakistani airstrikes the previous Sunday.
Pakistan had said its airstrike had targeted the outlawed Pakistani Taliban, also known as Tehreek-e-Taliban Pakistan, or TTP. Afghanistan had said only civilians were killed.
The TTP militant group, which is separate but closely allied with Afghanistan’s ruling Taliban, operates inside Pakistan, where it has been blamed for hundreds of deaths in bombings and other attacks over the years.
Pakistan accuses Afghanistan’s Taliban government of providing a safe haven within Afghanistan for the TTP, an accusation that Afghanistan denies.
After Thursday’s Afghan attack, Pakistani Defense Minister Khawaja Mohammad Asif declared that “our patience has now run out. Now it is open war between us.”
In the ongoing fighting, each side claims to have killed hundreds of the other side’s forces — and both governments put their own casualties at drastically lower numbers.
Two Pakistani security officials said that Pakistani ground forces were still in control on Sunday of a key Afghan post and a 32-square-kilometer area in the southern Zhob sector near Kandahar province, after having seized it during fighting Friday. The captured post and surrounding area remain under Pakistani control, they added. The officials spoke on condition of anonymity, because they weren’t authorized to speak publicly.
In Kabul, the Afghan government rejected Pakistan’s claims. Deputy government spokesman Hamdullah Fitrat called the reports “baseless.”
Afghan officials said that fighting had continued overnight and into Sunday in the border areas.
The police command spokesman for Nangarhar province, Said Tayyeb Hammad, said that anti-aircraft missiles were used from the provincial capital, Jalalabad, and surrounding areas on Pakistani fighter jets flying overhead Sunday morning.
Defense Ministry spokesman Enayatulah Khowarazmi said that Afghan forces had launched counterattacks with snipers across the border from Nangarhar, Paktia, Khost and Kandahar provinces overnight. He said that two Pakistani drones had been shot down and dozens of Pakistani soldiers had been killed.
Fitrat said that Pakistani drone attacks hit civilian homes in Nangarhar province late Saturday, killing a woman and a child, while mortar fire killed another civilian when it hit a home in Paktia province.
There was no immediate response to the claims from Pakistani officials.