Federal Minister for Petroleum Ali Pervaiz Malik revealed that Pakistan’s leadership is contemplating early market closures as part of austerity measures designed to address the ongoing energy crisis triggered by tensions in the Middle East. He discussed these developments during an interview on the programme ‘Aaj Shahzeb Khanzada Kay Saath’.
Malik referred to a meeting held the previous day, which included the chief ministers of all four provinces. The attendees proposed implementing early market shutdowns to conserve energy, suggesting that markets would close earlier than usual if the plan is approved. However, he noted that wedding halls and restaurants would be permitted to remain open until 10pm.
The energy and oil markets have been significantly disrupted since the United States and Israel launched joint strikes on Iran on February 28. In retaliation, Tehran effectively blocked the Strait of Hormuz, a vital shipping passage, and targeted oil refineries throughout the Gulf region. In response, Pakistan introduced a comprehensive austerity and fuel conservation strategy, initially raising petrol and diesel prices by Rs55 per litre on March 6. Prices peaked at Rs458.51 per litre before recently dropping to Rs378.41 following an Rs80 reduction.
During the interview, Malik emphasized the gravity of Pakistan’s economic situation, revealing that Finance Minister Muhammad Aurangzeb is scheduled to travel abroad next week for crucial meetings with the International Monetary Fund and the World Bank. These discussions will focus on detailing the economic pressures Pakistan faces and the necessity to reassess its economic framework.
Malik also highlighted the financial support from the United Arab Emirates, which has maintained deposits of $3.5 billion in Pakistan during difficult times. He added that Pakistan has prepared arrangements to respond if any country requests the return of its loans.
Regarding the energy supply, Malik stated that following disruptions in gas supplies from Qatar, domestic gas fields have compensated by providing between 400 to 500 MMCFD to stabilize the situation.
These statements come shortly after a proposal for a nationwide smart lockdown was rejected due to provincial governments’ opposition during a high-level meeting chaired by President Asif Ali Zardari in Islamabad. The federal government also called on provinces to contribute to a Rs254 billion relief package, emphasizing the importance of a unified approach to the country’s ongoing challenges.
