Federal Finance Minister Muhammad Aurangzeb. Photo: File
ISLAMABAD:
Finance Minister Muhammad Aurangzeb on Wednesday formally announced the introduction of energy-saving measures to deal with the disruption in fuel imports, as the government plans to close tertiary institutions and fix fuel prices on a weekly basis to cope with the developing situation.
However, the finance minister said the country had sufficient fuel stocks for this month, in addition to equal reserves of crude oil for 10 days, stressing that there was no immediate cause for concern.
“We are introducing energy-saving measures to reduce demand, but there will be no rationing of these products,” the finance minister said in a policy statement at a meeting of the Senate Standing Committee on Finance. Senator Saleem Mandviwalla of the PPP chaired the meeting.
We are introducing energy saving measures and we will have to quietly discipline ourselves to reduce demand, the Finance Minister said, ruling out the possibility of rationing of these products.
The finance minister did not reveal these measures, but officials said it had been proposed to move all higher education institutions to distance learning by closing facilities to save fuel. Another measure will be to fix the prices of petrol and diesel on a weekly basis, ending the current fortnightly pricing.
The latest sets of measures have not yet been approved by the committee, as it will deliberate on these energy-saving measures again today (Thursday). Prime Minister Shehbaz Sharif is expected to take a decision on Friday in light of the committee’s recommendations, the officials said.
Due to the “developing situation”, the petroleum committee may have to take decisions on an hourly basis and Prime Minister Shehbaz Sharif has empowered the petroleum committee to take decisions on a real-time basis, Aurangzeb said.
The minister further added that Pakistan has around 28 days of equal stocks of petrol and diesel and 10 days of crude oil. There are also LPG stocks equal to 15 days of the country’s requirement and we are closely monitoring the situation, said Aurangzeb, who is also the chairman of the Prime Minister’s committee to monitor petrol prices in the wake of the emerging situation in the region, constituted by the Prime Minister, meeting for the third time on Wednesday.
He, however, said the LNG shipments had arrived from Qatar and the government was closely monitoring the situation.
According to a document released by the Finance Ministry, members of the petroleum committee reviewed energy-saving measures as part of a broader contingency plan to effectively manage demand while maintaining orderly market conditions.
The Committee stressed that while supply conditions remain stable, prudent use and conservation of energy at all levels would help strengthen national preparedness if international uncertainties persist, the Finance Ministry said.
The committee was briefed on ongoing diplomatic and trade engagements with friendly countries and suppliers in the region to secure additional supplies of crude and oil if necessary. Pakistan has asked Saudi Arabia to provide fuel from alternative channels to avoid blockage of the Strait of Hormuz.
The Committee also noted ongoing efforts to diversify supply options through regional energy hubs, including potential arrangements through ports in the Red Sea and Gulf region, to maintain continuity of refining operations and ensure supply resilience.
“The Committee noted that the international energy environment remains fluid, particularly given the uncertainty surrounding the Strait of Hormuz and its implications for global energy trade,” the Finance Ministry said.
The Committee was informed that disruptions to regional shipping routes could affect global LNG logistics. LPG flows through cross-border channels are also closely monitored to ensure uninterrupted domestic availability.
The Committee also highlighted the importance of preventing hoarding, diversion or smuggling of petroleum products, particularly in times of international volatility.
Legislative program
After arguments between Muhammad Aurangzeb and PML-N Senator Anusha Rahman over the need to stop the ‘abuse of power of the Securities and Exchange Commission of Pakistan, the standing committee approved Miss Anusha’s bill with certain amendments.
Senator Anusha Rahman highlighted her concerns regarding governance and accountability in the SECP, including the retrospective increase in salaries and emoluments of commissioners and the composition of the SECP policy council.
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 a former SECP commissioner had first collected Rs 7 million as subscription from the Islamabad Club and deposited the money in the Treasury only to become eligible for renewal. She said such abuse of power was only possible because the SECP policy council was complacent.
Miss Anusha also criticized Finance Secretary Imdad Ullah Bosal and Secretary Law for remaining silent on SECP abuse of power. The two secretaries are members of the board of directors.
The finance minister argued that abuse of power by a few individuals should not be a reason to restrict institutional autonomy.
