ISLAMABAD — Finance Minister Muhammad Aurangzeb on Wednesday cautioned about oil supply risks amid global uncertainty triggered by the US-Israel and Iran war, while assuring lawmakers that Pakistan is not facing an emergency situation.
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Briefing the Senate Standing Committee on Finance, Aurangzeb advised fuel conservation as a precautionary step but ruled out rationing.
“We are not going for rationing of fuel as there is no fuel shortage in the country, but things could become serious if the war drags on,” he said in response to a query by committee chairman Saleem Mandviwala.
Lawmakers were informed that Pakistan currently has petrol and diesel stocks sufficient for 28 days, crude oil reserves for 10 days, and liquefied petroleum gas (LPG) and liquefied natural gas (LNG) supplies for 15 days. The minister noted that some cargo shipments had been delayed in Qatar, but local gas production was being ramped up to offset shortfalls.
The committee was told that the finance ministry would hold daily meetings with relevant departments to closely monitor fuel stocks and international price movements.
Amid concerns over regional supply disruptions, Pakistan has formally requested Saudi Arabia to provide an alternative oil supply route via Yanbu following the closure of the Strait of Hormuz.
Meanwhile, Jamil Ahmad, Governor of the State Bank of Pakistan, warned that global oil prices could rise to $100 per barrel, increasing pressure on the external sector.
Ahmad said Pakistan’s foreign exchange reserves have surpassed $16 billion and are projected to reach $18 billion by June and around $20 billion by December. He emphasised that the reserves were not built through fresh external borrowing but through market purchases totaling approximately $24 billion over the past three years.
Pakistan’s external debt has risen from $55 billion to around $103 billion over time, he noted, while total external liabilities currently stand at about $138 billion. However, he maintained that no additional external borrowing had occurred in the last four years.
On inflation, the SBP governor projected that price growth would remain between 5 percent and 7 percent during the current fiscal year and likely stay within the same range next year. He cautioned that escalating geopolitical tensions and higher energy prices could affect Pakistan’s import bill and domestic inflation in the coming months.
Ahmad added that the current account deficit is expected to remain around 1 percent of gross domestic product this fiscal year, staying within projected limits despite rising petroleum prices.
