ISLAMABAD: Pakistan’s Petroleum Minister Ali Pervaiz Malik said this week that three oil shipments are expected to reach Pakistan on Monday, state media reported as Islamabad grapples with a potential fuel shortage and the impact of surging oil prices worldwide amid tensions in the Gulf region.
Pakistan last week increased petrol and diesel prices by Rs55 ($0.20) per liter each as the conflict in the Middle East involving Iran, Israel and the US pushed global oil prices higher and disrupted key energy supply routes, including the Strait of Hormuz where roughly 20 percent of the world’s oil and gas supply passes through.
Pakistan’s government has deliberated measures to conserve fuel as the Middle East conflict intensifies with no signs of either side letting up. Islamabad has also sought Saudi Arabia’s help in securing oil supplies through the Red Sea port route, as the Strait of Hormuz remains closed for trade.
A delegation of the federal government, led by Finance Minister Muhammad Aurangzeb and comprising Malik, met Sindh Chief Minister Murad Ali Shah in Karachi on Sunday to discuss Islamabad’s plans to conserve energy and deal with a potential fuel crisis in case the Middle East conflict continues.
“Petroleum Minister Ali Pervaiz Malik informed that three oil shipments are expected to reach Pakistan tomorrow [Monday],” state broadcaster Radio Pakistan reported on Sunday. The minister did not clarify where the oil shipments will arrive.
Pakistan’s government has warned petrol pumps against hoarding and profiteering in the wake of tensions in the Gulf region. The Oil and Gas Regulatory Authority (OGRA) last week announced it has allowed oil marketing companies to regulate the supply of fuel to retail pumps.
Malik told participants of the meeting that a joint dashboard with Pakistani provinces will be established by the federal government to monitor fuel reserves and hoarding at petrol pumps.
Meanwhile, Aurangzeb said the federal government is closely monitoring global energy markets and preparing alternative plans to manage the financial impact of rising oil prices.
“He said that the country’s monthly oil import bill can increase by about 600 million dollars if prices continue to rise,” Radio Pakistan said.
AUSTERITY PLAN
Pakistan’s government is set to announce an austerity plan on Monday as pressure mounts on Sharif’s government to curb spending and stabilize the economy.
Sharif presided over a high-level meeting on Sunday to review measures to stabilize the economy amid the Middle East conflict, with officials saying global supply disruptions and price fluctuations may have an impact on Pakistan, the prime minister’s office said in a statement.
“In view of the recent international situation, timely implementation of measures is essential for the country’s economic stability,” Sharif was quoted as saying at the meeting. “The government is constantly monitoring the situation and all necessary decisions will be taken to provide all possible stability to the national economy.”
The Pakistani premier said that government ministers and employees will have to adopt the austerity measures.
“In the current difficult times, it is important to ensure wise use of national resources and as soon as this difficult phase passes and the economy becomes more stable, the government will provide maximum relief to the people,” he said.
Instructions regarding austerity will not be applicable to the industry and agriculture sectors so that the country’s production, exports and food security are not affected, Sharif’s office announced.
