ISLAMABAD:
The federal government has finalized a phased national energy conservation action plan to reduce demand for imported petroleum products and reliquefied natural gas (RLNG) in light of the closure of the Strait of Hormuz and fears of an energy crisis.
An emergency meeting to review the plan in light of rising tensions in the Middle East will be held today (Monday) under the chairmanship of Prime Minister Shehbaz Sharif.
According to sources, the plan proposes reintroducing several austerity and energy-saving measures that were implemented during the COVID-19 pandemic.
The government also plans to take strict measures against hoarding and smuggling of petrol and diesel. Recommendations have been prepared to introduce work-from-home arrangements also in the business sector and in private institutions.
The authorities have also decided to continuously monitor global oil prices and supply conditions. According to the proposed strategy, LNG, LPG and natural gas will be supplied on a priority basis to essential sectors.
The proposals include the introduction of online classes in educational institutions, work-from-home policies and limited attendance at government offices, except in the health sector.
Government meetings are expected to be held virtually, while in a first phase the number of holidays may be increased, following the model adopted during the Covid-19 pandemic.
The government has come up with a three-phase strategy. In the first phase, energy saving measures will be implemented within the public sector. In the second phase, schools, universities and private hospitals will be able to adopt online assignments and remote work arrangements.
Sources said three to four dozen proposals have been prepared and will be presented to the prime minister today for final approval. Once approved, the measures will be implemented immediately.
The decision to introduce a comprehensive national energy conservation plan was taken earlier, and a committee headed by Finance Minister Muhammad Aurangzeb had prepared the draft plan in consultation with the provinces.
On Sunday, Prime Minister Shehbaz Sharif chaired a high-level meeting to review measures to maintain Pakistan’s economic stability in light of rising international tensions and their potential economic implications.
According to the Prime Minister’s Office, the meeting was briefed in detail about the evolving global situation and its potential impact on Pakistan’s economy.
During the meeting, officials emphasized that austerity and cost-saving measures would not apply to the industrial and agricultural sectors to ensure that domestic production, exports and food security are not affected.
The prime minister emphasized that the burden of austerity should be shared fairly by all segments of society, urging in particular the privileged and elite classes to lead by example by accepting the necessary adjustments.
The officials presented several proposals and recommendations focused on austerity and prudent spending to stabilize the economy, which were reviewed during the meeting. It was also announced that the final austerity plan would be formally unveiled on Monday.
The briefing further informed the meeting that the country currently had adequate reserves of diesel, gasoline and other petroleum products, and that the government had already made advance arrangements to deal with any possible emergency.
The officials informed the prime minister that the current regional situation could affect the country’s economy, particularly energy supply and price fluctuations in international markets.
The Prime Minister emphasized that timely measures were essential to ensure economic stability given the prevailing global situation. He said the government was closely monitoring developments and would take all necessary decisions to safeguard the national economy.
Shehbaz reaffirmed the government’s commitment to protecting public interests and ensuring economic stability despite the difficult circumstances.
He directed the federal cabinet, elected representatives at the federal and provincial levels and senior government officials to fully play their role in providing relief to the public and ensuring efficient use of national resources.
He also instructed ministers and government employees to adopt austerity and simplicity in official affairs, emphasizing the need for prudent use of national resources in difficult times.
The prime minister said that once the current challenges are overcome and the economy becomes more stable, the government will provide maximum relief to the public.
Meetings with CM
Meanwhile, Finance Minister Muhammad Aurangzeb and Petroleum Minister Ali Pervaiz Malik met the chief ministers of Sindh and Punjab and discussed Pakistan’s energy situation amid rising global oil prices and escalating tensions in the Middle East.
Federal and provincial officials said three shipments of oil were expected to arrive in the country on Monday (today), but warned that any further disruption could hit supplies, increase the country’s import bill and put additional pressure on the national economy.
The federal outreach to the provinces came a day after Prime Minister Shehbaz Sharif ordered the two ministers to work with provincial governments on a strategy to conserve fuel and ensure uninterrupted supplies amid concerns sparked by the growing conflict between Israel and Iran.
Aurangzeb and Malik met Sindh Chief Minister Syed Murad Ali Shah at the Chief Minister House in Karachi on Sunday after holding a similar meeting with Punjab Chief Minister Maryam Nawaz in Lahore.
Participants were informed about the increase in international oil prices and the country’s fuel reserves. Federal officials have warned that if tensions in the Middle East escalate further, the price of crude oil could rise to $120 per barrel, which could significantly increase Pakistan’s import costs.
Aurangzeb told the meeting that Pakistan’s monthly oil import bill could rise by up to $600 million if global prices rise sharply. He added that the government was closely monitoring international energy markets and preparing contingency plans to manage the financial impact.
Petroleum Minister Malik informed participants that three shipments of gasoline were expected to arrive in Pakistan on Monday (today), but warned that conservation measures would still be necessary to ensure that existing fuel reserves last longer and remain available for essential sectors.
Officials also expressed concern over possible hoarding at gasoline pumps, prompting federal and provincial authorities to agree to strengthen coordination to avoid artificial shortages and ensure smooth distribution of petroleum products across the country.
The meeting was also informed that Qatar had declared “force majeure”, raising concerns about possible disruptions to liquefied natural gas (LNG) supplies. Officials said diplomatic contacts had intensified to explore alternative supplies and safe routes.
To improve monitoring of fuel availability, the federal government is preparing a joint monitoring dashboard in coordination with provincial authorities to track oil reserves and supply patterns in real time.
Emergency energy conservation measures were also discussed during the meeting, aimed at managing fuel consumption more efficiently while ensuring that economic activity continues without further disruption.
On the occasion, Chief Minister Murad Ali Shah highlighted the importance of responsible use of energy and public cooperation, saying that the government’s priority was to manage the situation prudently while keeping the economy running.
He added that the proposals discussed in the meeting will be presented before the provincial cabinet for further deliberation and decision.
Separately, Chief Minister Maryam Nawaz also reviewed the supply, demand and stocks of petroleum products during the meeting with the ministers, officials said.
At the meeting it was agreed to adopt a conservation policy to maintain the balance between the supply and demand of petroleum products in the province. The Prime Minister highlighted the need to ensure uninterrupted supply of diesel for agricultural use.
He ordered authorities to take strict action against hoarding of petroleum products. It also ordered district administrations to continuously monitor fuel supply and ensure that petrol pumps do not sell petroleum products above the officially fixed prices.
The chief minister further directed the Punjab Enforcement and Regulatory Authority (Pera) and the transport department to monitor the situation and take action where necessary.
“Citizens should not have to stand in long lines at gasoline pumps,” he said, calling for national unity to address the challenges created by the global energy crisis.
Officials also briefed the meeting on existing reserves of gasoline, diesel, LNG and other fuels, warning that immediate conservation and austerity measures were inevitable in view of the uncertain international energy environment.
Participants in both meetings agreed that close coordination between the federal and provincial governments would be essential to manage the evolving energy situation and safeguard Pakistan’s economic stability.
(WITH CONTRIBUTIONS FROM OUR CORRESPONDENTS IN LAHORE AND KARACHI)
