Federal Minister for Petroleum and Natural Resources Ali Pervaiz Malik on Monday told the National Assembly that Pakistan had effectively managed a severe global oil shock, ensuring uninterrupted fuel and energy supplies while shielding the most vulnerable segments of society.
The minister said the crisis erupted after escalating regional tensions, particularly around the Strait of Hormuz, which handles 20–25 percent of global oil shipments, disrupted supply chains for crude, diesel, LPG, LNG, fertilizers, and other industrial products. Global crude prices spiked from $70 to $170 per barrel, while diesel premiums surged from $5 to $60–70 per barrel, compounded by higher shipping and insurance costs.
To absorb the shock, Pakistan mobilized over Rs100 billion and implemented a targeted subsidy programme replacing blanket fuel subsidies that had reached Rs50–60 billion per week, and monthly levels of Rs200–300 billion. Digital mechanisms, including e-wallets linked to provincial records, ensured efficient delivery of relief to farmers, transport workers, motorcyclists, and low-income commuters. Millions of transactions have already been processed under supervision of the deputy prime minister, avoiding long queues at fuel stations.
Ali Pervaiz Malik highlighted proactive coordination under Prime Minister Shehbaz Sharif and President Asif Ali Zardari, along with provincial governments and key institutional stakeholders. National assets, including the Pakistan National Shipping Corporation fleet and local refineries operating at full capacity, sustained supply chains. Alternative crude and LNG supplies were arranged from Saudi Arabia, the UAE, and Oman after disruptions from Qatar, keeping domestic fuel availability steady.
The minister also emphasized stabilizing fertilizer production and prices at Rs4,500 per bag, supporting farmers with Rs1,500 per acre subsidies for landholdings up to 25 acres, and preventing fare hikes in urban and intercity transport. Provincial measures, such as early market closures, aided electricity conservation and reduced reliance on costly fuel-based power generation.
Ali Pervaiz Malik concluded that through timely interventions, financial mobilization, and strategic coordination, Pakistan avoided major disruptions during one of the most severe global energy shocks in recent memory, safeguarding both economic stability and vulnerable populations.
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