Federal Finance Minister Muhammad Aurangzeb. Photo: Archive
ISLAMABAD:
Finance Minister Muhammad Aurangzeb on Wednesday formally announced that he will introduce energy conservation measures to address the disruption in fuel imports, as the government considers closing higher education institutions and fixing weekly fuel prices to address the evolving situation.
However, the Finance Minister said the country has sufficient fuel reserves for this month, in addition to equal reserves of crude oil for 10 days, and stressed that there was no cause for immediate concern.
“We are introducing energy conservation measures to reduce demand, but there will be no rationing of these products,” the Finance Minister said in a policy statement during a meeting of the Senate Standing Committee on Finance. PPP Senator Saleem Mandviwalla chaired the meeting.
We are introducing energy conservation measures and we would have to be self-disciplined and not make noise to reduce demand, said the Minister of Finance, ruling out the possibility of rationing of these products.
The Finance Minister did not reveal those measures, but officials said it was proposed to shift all higher education institutions to remote learning by closing facilities to save fuel. Another measure will be to fix gasoline and diesel prices weekly, ending the current fortnightly pricing.
The committee has not yet approved the final set of measures as it will deliberate again on these energy saving measures today (Thursday). Prime Minister Shehbaz Sharif is expected to take a decision on Friday in light of the committee’s recommendations, officials said.
Due to the “evolving situation”, the petroleum committee may have to take decisions every hour and Prime Minister Shehbaz Sharif has authorized the petroleum committee to take decisions in real time, Aurangzeb said.
The minister further added that Pakistan has equal reserves of about 28 days of petrol and diesel and 10 days of crude oil. There are also LPG reserves equivalent to 15 days of the country’s needs and we are closely monitoring the situation, said Aurangzeb, who is also the chairman of the Prime Minister’s committee for monitoring oil prices in view of the emerging situation in the region, constituted by the Prime Minister, meeting for the third time on Wednesday.
However, he said LNG cargoes had arrived from Qatar and the government was closely monitoring the situation.
According to a handout issued by the Ministry of Finance, members of the petroleum committee reviewed energy conservation measures as part of a broader contingency plan aimed at managing demand efficiently while maintaining orderly market conditions.
The Committee emphasized that while supply conditions remain stable, prudent use and conservation of energy at all levels would help strengthen national preparedness in case international uncertainties persist, the Finance Ministry said.
The committee was briefed on the ongoing diplomatic and trade engagement with friendly countries and suppliers in the region to secure additional supplies of crude oil and oil when required. Pakistan has requested Saudi Arabia to provide fuel from alternative channels to avoid blockage in the Strait of Hormuz.
The Committee also noted ongoing efforts to diversify procurement options through regional energy hubs, including potential deals through ports in the Red Sea and Gulf region, to maintain continuity of refinery operations and ensure supply resilience.
“The Committee noted that the international energy environment remains fluid, especially given the uncertainty surrounding the Strait of Hormuz and its implications for global energy trade,” the Ministry of Finance stated.
The Committee was informed that disruptions to regional shipping routes could impact global LNG logistics. LPG inflows through cross-border channels are also being closely monitored to ensure uninterrupted domestic availability.
The Committee also highlighted the importance of preventing the hoarding, diversion or smuggling of petroleum products, particularly in times of international volatility.
Legislative agenda
After discussions between Muhammad Aurangzeb and PML-N Senator Anusha Rahman on the need to end the “abuse of power by the Securities and Exchange Commission of Pakistan”, the standing committee passed Ms Anusha’s bill with certain amendments.
Senator Anusha Rahman highlighted concerns regarding governance and accountability within the SECP, including the retrospective increase in salaries and emoluments of commissioners and the composition of the SECP political board.
The committee approved amendments to the SECP Act to reduce the number of private members in the SECP board from six to four and increase the number of government members from five to seven despite strong resistance from Finance Minister Muhammad Aurangzeb.
Senator Anusah Rahman said that a former SECP commissioner first took Rs 7 million from the membership fee of the Islamabad Club and only deposited the money in the treasury so that he could be eligible for reappointment. He said such abuse of power was only possible because the SECP political board was complacent.
Miss Anusha also came down hard on Finance Secretary Imdad Ullah Bosal and Secretary Law for remaining silent on the abuse of power by the SECP. Both secretaries are members of the council.
The Finance Minister maintained that abuse of power by a few individuals should not be a reason to restrict institutional autonomy.
