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Key Economic Indicators

Pakistan Has Adequate Fuel Stocks but Global Conflict Could Create Pressure

Pakistan currently has sufficient fuel reserves, and there is no immediate shortage in the country, according to Finance Minister Muhammad Aurangzeb. However, he warned that prolonged geopolitical tensions and rising oil prices could create economic pressure if the situation continues for an extended period. Speaking during a briefing to the Senate Standing Committee on Finance, the minister said that Pakistan’s energy supply chain remains stable but authorities are closely monitoring developments in global oil markets. He emphasized that the government has not introduced any fuel rationing measures because the country has adequate petroleum reserves at present. At the same time, officials have advised the public and industries to adopt responsible fuel usage as a precautionary measure while international conditions remain uncertain. Policymakers are particularly focused on the potential impact of the ongoing conflict in the Middle East which has raised concerns about global energy supply routes and future price volatility.

During the briefing, officials informed the committee that Pakistan currently holds petrol and diesel reserves sufficient for approximately twenty eight days while crude oil stocks can support demand for about ten days. Liquefied petroleum gas and liquefied natural gas reserves are estimated to cover around fifteen days of consumption. Authorities acknowledged that some energy cargoes have faced delays due to disruptions in regional logistics networks. To offset any temporary supply challenges, the government has increased output from domestic gas fields and is working with energy companies to maintain stable distribution across the country. Officials also revealed that the finance ministry will conduct daily meetings with relevant departments to monitor fuel availability and evaluate changes in international oil prices. This monitoring mechanism aims to ensure that policymakers can respond quickly if global developments begin to affect Pakistan’s energy supply chain.

Pakistan has also begun exploring alternative supply routes in order to protect its fuel imports from possible disruptions in key maritime corridors. The government has formally approached Saudi Arabia to facilitate oil shipments through the Yanbu route as a precautionary step. Energy imports remain one of the largest components of Pakistan’s annual import bill, which makes the economy particularly sensitive to fluctuations in global crude prices. Analysts say that any sustained increase in oil prices could widen the country’s trade deficit and add pressure on foreign exchange reserves. Policymakers therefore remain focused on maintaining stable fuel supplies while also managing the broader economic impact of international market volatility and geopolitical risks.

State Bank of Pakistan Governor Jamil Ahmad also briefed the committee on the country’s macroeconomic outlook and external financial position. He noted that foreign exchange reserves have improved in recent months and currently stand above sixteen billion dollars. The central bank expects reserves to reach around eighteen billion dollars by June and potentially approach twenty billion dollars by the end of the year if current trends continue. According to the governor these reserves were built largely through market purchases rather than additional external borrowing which helped strengthen Pakistan’s financial buffers. He also highlighted that inflation during the current fiscal year is expected to remain between five and seven percent although geopolitical tensions and rising energy prices could influence price levels in the months ahead.

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Key Economic Indicators

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