ISLAMABAD: Finance Minister Muhammad Aurangzeb told a Senate committee on Wednesday that Pakistan currently faces no fuel shortage despite global market uncertainty linked to the ongoing conflict involving the United States, Israel and Iran.
Speaking during a briefing to the Senate Standing Committee on Finance, the minister said the country has adequate petroleum reserves but advised adopting fuel conservation measures as a precaution if the international situation worsens.
Aurangzeb said Pakistan has petrol and diesel reserves sufficient for about 28 days, while crude oil stocks are available for around 10 days. Supplies of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) are estimated to last about 15 days, according to officials.
He said the government was closely monitoring the energy supply chain but clarified that there were no plans to impose fuel rationing.
Government monitoring fuel supply situation
The finance minister informed the committee that the government would hold daily coordination meetings with relevant departments to track international oil prices and assess the country’s fuel position.
He noted that some energy cargo shipments had faced delays in Qatar, but authorities were working to offset the shortfall by increasing output from domestic gas fields.
Pakistan has also approached Saudi Arabia to explore alternative oil supply routes through Yanbu, following concerns about disruptions to shipping lanes in the Strait of Hormuz, a critical global oil transit route.
Saudi Arabia assures support to Pakistan on energy supply amid Strait of Hormuz concerns
Oil price risks and economic outlook
During the same meeting, State Bank of Pakistan Governor Jamil Ahmad said global oil prices could potentially rise to $100 per barrel if regional tensions continue, which may add pressure to Pakistan’s external sector.
Energy imports represent a significant portion of Pakistan’s annual import bill, making international oil price movements an important factor for the country’s economic stability.
Ahmad said Pakistan’s foreign exchange reserves currently stand at more than $16 billion, with the central bank expecting reserves to reach $18 billion by June and about $20 billion by December.
The governor said the reserves were built through market purchases rather than new borrowing, noting that the State Bank had purchased approximately $24 billion from the market during the past three years.
External debt and reserves position
The central bank chief told the committee that Pakistan’s external debt has increased over time from about $55 billion to around $103 billion, while the country’s total external liabilities currently stand at approximately $138 billion.
He added that no additional external borrowing had been undertaken during the past four years and said the central bank’s foreign exchange purchases had helped stabilise the currency and strengthen the country’s financial buffers.
Officials said the government and financial authorities would continue monitoring global developments as the geopolitical situation evolves.
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