ISLAMABAD:
The federal government has finalized a progressive national energy conservation action plan aimed at reducing demand for imported petroleum products and reliquefied natural gas (RLNG) due to the closure of the Strait of Hormuz and fears of an energy crisis.
An emergency meeting to review the plan in light of growing tensions in the Middle East will be held today (Monday) under the chairmanship of Prime Minister Shehbaz Sharif.
According to sources, the plan proposes to reintroduce several austerity and energy-saving measures implemented during the COVID-19 pandemic.
The government also plans to take strict action against hoarding and smuggling of petrol and diesel. Recommendations have been prepared to introduce work from home arrangements in the corporate sector and in private institutions as well.
The authorities also decided to continuously monitor global oil prices and supply conditions. Under the proposed strategy, LNG, LPG and natural gas will be supplied on priority to essential sectors.
The proposals include the introduction of online classes in educational institutions, work-from-home policies and limited attendance in government offices, with the exception of the health sector.
Government meetings should be held virtually, while the number of public holidays could be increased in a first phase, following the model adopted during the Covid-19 pandemic.
The government has developed a three-phase strategy. Initially, energy saving measures will be implemented in the public sector. In the second phase, private schools, universities and hospitals will be able to adopt online assignments and remote working 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.
Prime Minister Shehbaz Sharif on Sunday chaired a high-level meeting to review measures to maintain Pakistan’s economic stability in light of rising international tensions and their possible economic implications.
According to the Prime Minister’s Office, the meeting received a detailed briefing on the evolving global situation and its potential impact on Pakistan’s economy.
During the meeting, officials stressed that austerity and savings measures would not apply to the industrial and agricultural sectors to ensure that national production, exports and food security are not affected.
The Prime Minister stressed that the burden of austerity should be shared fairly among all segments of society, urging in particular the privileged classes and elites to set an example by accepting the necessary adjustments.
Officials presented several proposals and recommendations focused on austerity and prudent spending to stabilize the economy, which were discussed at the meeting. It was also announced that the final austerity plan would be officially unveiled on Monday.
The briefing further informed the participants that the country currently had sufficient reserves of diesel, gasoline and other petroleum products, and the government had already made advance arrangements to deal with any potential emergencies.
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 stressed that timely measures were essential to ensure economic stability given the current 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 civil servants to play their full role in providing relief to the people and ensuring effective utilization of national resources.
He also asked ministers and government employees to embrace austerity and simplicity in official affairs, stressing the need for prudent use of national resources during difficult times.
The Prime Minister said once the current challenges are overcome and the economy becomes more stable, the government will provide maximum relief to the people.
Meetings with CMs
Meanwhile, Finance Minister Muhammad Aurangzeb and Oil 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 oil shipments were expected to arrive in the country on Monday (today), but warned that any further disruption could strain supplies, increase the country’s import bill and put further pressure on the domestic economy.
The federal approach to the provinces came a day after Prime Minister Shehbaz Sharif asked the two ministers to work with provincial governments on a strategy to save fuel and ensure uninterrupted supplies amid concerns over the worsening Israel-Iran conflict.
Aurangzeb and Malik met Sindh Chief Minister Syed Murad Ali Shah at the Chief Minister’s House in Karachi on Sunday after holding a similar meeting with Punjab Chief Minister Maryam Nawaz in Lahore.
Participants were briefed on rising international oil prices and the country’s fuel reserves. Federal officials have warned that if tensions in the Middle East further escalate, the price of crude oil could reach $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.
Oil Minister Malik informed participants that three shipments of gasoline are expected to arrive in Pakistan by 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 stockpiling at gas pumps, prompting federal and provincial authorities to agree to strengthen coordination to prevent 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 over possible disruptions to liquefied natural gas (LNG) supplies. Officials said diplomatic contacts had been intensified to explore alternative supplies and secure 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-saving measures were also discussed during the meeting, aimed at managing fuel consumption more efficiently while ensuring economic activity continues without major disruption.
Speaking on the occasion, Chief Minister Murad Ali Shah highlighted the importance of responsible use of energy and public cooperation, saying the government’s priority was to manage the situation prudently while keeping the economy running.
He added that the proposals discussed in the meeting would be presented to the provincial cabinet for deliberation and further decision.
Besides, Chief Minister Maryam Nawaz also reviewed the supply, demand and reserves of petroleum products during the meeting with ministers, officials said.
The meeting agreed to adopt a conservation policy to maintain a balance between supply and demand of petroleum products in the province. The Chief Minister stressed the need to ensure uninterrupted supply of diesel for agricultural use.
She ordered the authorities to carry out a strict crackdown against the hoarding of petroleum products. She also directed district administrations to constantly monitor fuel supplies 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 if necessary.
“Citizens should not have to wait in long queues at gas pumps,” she said, calling for national unity to confront 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 given the uncertain international energy environment.
Participants at both meetings agreed that close coordination between the federal and provincial governments would be essential to manage the changing energy situation and safeguard Pakistan’s economic stability.
(COURTESY OF OUR CORRESPONDENTS IN LAHORE AND KARACHI)
