Pakistan government considers freezing petroleum product prices despite global increases
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No power crisis, exports intact amid Gulf war disruptions: PM
• Orders fast-tracking of Battery Energy Storage System project • Says demand for Pakistani products rising in Gulf markets • In a meeting with top Turkish judge Kadir Ozkaya, premier highlights growing judicial cooperation with Ankara ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday said that no electricity crisis had occurred and no disruption to the country’s exports had been witnessed despite disruptions in oil supply due to the Gulf war. “Despite disruptions in oil supply caused by regional tensions, no electricity crisis has emerged in the country owing to a significant share of renewable energy in electricity generation,” the prime minister said while presiding over a meeting on long-term energy planning and export strategy amid the current international situation. He also directed authorities to expedite work on the Battery Energy Storage System project. “Solar energy and other renewable energy sources are the future of the power sector,” he said, directing the formulation of a comprehensive national strategy to further expand renewable energy sources. He added that Pakistani exports to Gulf countries were continuing despite recent global tensions and challenges. The prime minister directed the Pakistan National Shipping Corporation (PNSC) to arrange ships to boost exports via maritime routes. “Despite regional tensions, successful diplomacy has ensured the continued supply of Pakistani exports to Gulf countries,” he said. During the meeting, the prime minister was briefed on the long-term strategy for electricity generation, export opportunities in the current global situation, challenges faced, and measures to address them. According to the briefing, 55 per cent of total electricity generation currently comes from renewable sources, while 45pc comes from fossil fuels. “Planning is underway to increase electricity generation from renewable sources to 90pc and reduce fossil fuel-based generation to 10pc over the next ten years,” he added. The briefing further noted that diplomatic efforts with Gulf countries were ongoing to facilitate national exports in light of recent regional tensions. It was also highlighted that demand for Pakistani agricultural products in Gulf countries had been steadily increasing. The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, federal ministers Ahsan Iqbal, Rana Tanveer Hussain, Jam Kamal Khan, Dr. Musadik Malik, Ahad Cheema, Muhammad Aurangzeb, Attaullah Tarar, Ali Pervaiz Malik, Sardar Owais Ahmed Leghari, Junaid Anwar Chaudhry, Minister of State for Finance Bilal Azhar Kayani, special assistants Haroon Akhtar and Tariq Bajwa and State Bank Governor Jameel Ahmad. PM meets top Turkish judge Meanwhile, Prime Minister Shehbaz Sharif emphasised the growing scope of cooperation between Pakistan and Turkiye in the judicial sector, particularly through the use of digital technologies to ensure faster and more efficient delivery of justice. He was speaking during a meeting with Kadir Ozkaya, President of the Constitutional Court of Turkiye, who called on him along with a high-level delegation, according to a press release. Highlighting the deep-rooted brotherly ties between the two countries, the prime minister said that Pakistan and Turkiye were steadily advancing toward a comprehensive economic partnership. He added that both countries could benefit from each other’s experiences to improve citizens’ access to justice. Published in Dawn, April 8th, 2026
DawnApril 8, 2026 at 02:38 AM UTCPM Shehbaz calls on nation to contribute to fuel conservation, austerity drive
Prime Minister Shehbaz Sharif called on the nation on Tuesday to contribute to fuel conservation and the austerity drive in the country, keeping in view the situation resulting from the ongoing war in the Middle East. The war began with US-Israeli attacks on Iran on February 28 and has given rise to a global fuel crisis. In order to deal with the situation, the government announced unprecedented austerity measures on March 9. On Monday, the government also announced that the markets would close across the country except Sindh by 8pm to conserve energy. According to a statement issued by the PM’s Office (PMO) on Tuesday, the premier presided over a meeting to review the implementation of fuel- and energy-conservation measures, as well as austerity measures. “The meeting was briefed on the implementation of decisions regarding austerity measures that are aimed at achieving economic stability,” the PMO statement said. It said the meeting was also briefed on the arrangements made for the closure of markets and shopping malls by 8pm in Punjab, Khyber Pakhtunkhwa, Balochistan, Azad Jammu and Kashmir, Gilgit-Baltistan and Islamabad. It quoted PM Shehbaz as saying, “Given the seriousness of the situation in the region, the entire nation should contribute toward fuel conservation and the austerity drive.” He said “hoarding petroleum products is unforgivable” and warned of strict action against those involved in this act. He highlighted that a large part of electricity generation in the country depended on petroleum products. “The purpose of closing markets early and taking other austerity measures is not only to save foreign reserves but also to ensure uninterrupted electricity supply,” he explained. The meeting was informed that consultations with the Sindh government were ongoing regarding the closure of markets and shopping malls by 8pm, the PMO statement said. It added that provincial governments had started sharing data of people eligible for fuel subsidies. They were receiving subsidies through a transparent digital system after data verification, the meeting was told. The meeting was also informed that subsidies to freight vehicles, buses and trucks were being provided since April 4 through a collaboration between the Ministry of Information Technology and the State Bank of Pakistan, the statement added.
DawnApril 7, 2026 at 05:18 PM UTCPetrol pump owners, dealers demand increase in commission proportionate to recent price hikes
ISLAMABAD: The All Pakistan Petrol Pump Owners Association (APPPOA) and Pakistan Petroleum Dealers Association (PPDA) on Tuesday demanded that the government immediately increase their commission. They warned that if their commission was not raised in proportion to recent price hikes, they would be forced to shut down fuel outlets nationwide. The associations demanded a margin revision to eight per cent of the invoice price, arguing that the current fixed profit of Rs8 per litre was insufficient to cover rising operational costs. Furthermore, they cautioned that existing margins made it financially impossible to continue accepting bank credit or corporate fuel cards. “Currently, we are paying 0.75pc to banks and card companies on every Rs100 of fuel sold,” explained one petrol pump owner. Addressing a press conference, PPDA Chairman Abdul Sami Khan highlighted that the cost of doing business had reached unprecedented levels, arguing that operating under profit margins that had remained unrevised for a long time was no longer economically viable. He further said that the future course of action would be decided in the meeting of the association with other stakeholders in Karachi next week. The PPDA chairman said the price hike was implemented after the associations met with the Petroleum Minister Ali Pervaiz Malik, a meeting that reportedly failed to address their primary grievances. He further said that the Balochistan government had notified that petrol would be available at Rs280 per litre across the province, alleging that Iranian petrol was illegally imported and its price was being set locally. Speaking at the press conference, APPPOA Chairman Humayun Khan said their business was also being severely affected by the influx of smuggled fuel. He questioned why the authorities responsible for curbing smuggling had been unable to stop it and asked who was responsible for controlling smuggling at the borders. APPPOA Vice Chairman Nouman Ali Butt mentioned that fuel retailers were currently operating on a margin of less than 2pc, which was unsustainable. He added that the association was demanding a guaranteed minimum of Rs6 per litre margin, with a flexible adjustment mechanism to account for future price increases or decreases. “The Oil and Gas Regulatory Authority (Ogra) has guaranteed a margin of Rs8.64 per litre for petrol pump operators,” he added. He added that both associations were working together to press the government for their requested margin increase. After the US-Israel war on Iran began, the government initially hiked petrol and diesel prices by Rs55 per litre on March 6. On three separate occasions in the following weeks, Prime Minister Shehbaz said that he had rejected recommendations to increase fuel prices despite an increase in the global market. However, last week, the government announced an unprecedented increase of 43 per cent and 55pc in the prices of petrol and high-speed diesel, respectively. But just a day later, PM Shehbaz had slashed the petroleum levy by Rs80 per litre and bringing the price of petrol down to Rs378 per litre.
DawnApril 7, 2026 at 12:52 PM UTC‘No impact’ of Middle East conflict on remittances from Gulf countries so far: finance minister
ISLAMABAD: Finance Minister Muhammad Aurangzeb on Tuesday said the ongoing conflict sparked by the US-Israeli war on Iran has not adversely impacted Pakistan’s remittances from the Middle East. “Some members spoke of remittances, which is true. [However,] thankfully, there has been no impact on remittances as of yet,” Aurangzeb said while speaking on the National Assembly floor. “However, the reality is, roughly between 40 to 50 per cent of our remittances are coming from the GCC (Gulf Cooperation Council) countries,” the minister said, pointing out the region’s large contribution. “So we are also reviewing its elasticity, that what difference it can make on the balance of payments and the current account,” he added. Noting that other lawmakers had “rightfully” wondered what impacts the conflict would have on Pakistan’s economy, Aurangzeb said the government was regularly monitoring several aspects. “Not only is the oil and gas bill increasing, but trade and insurance cost has gone up and the vessels available that bring these molecules,” he added. Commenting on Pakistan’s diplomatic efforts to secure peace in the Middle East, Aurangzeb said, “Pakistan is playing its role, with prime minister sahib, field marshal sahib, deputy prime minister sahib. May God make us take things to the finishing line.” However, he cautioned that even if hostilities cease soon, the resulting crisis would remain for “weeks and months” as energy infrastructure has been hit and continues to be hit across the Gulf. During his speech, Aurangzeb detailed that government meetings are held on a daily basis, where steps taken by others in South Asia and even those in Southeast Asia are studied. “Rationing has begun in a lot of countries […] even people with deep pockets have already transmitted the price. If you compare internationally, in the UAE, petrol prices were increased by 30pc and diesel prices by 70pc,” he said. The minister cited Bangladesh, Sri Lanka, India, Philippines and Cambodia as examples of nations hit hard by the ongoing crisis. In an apparent response to remarks made by other lawmakers, Aurangzeb stressed the need to set some facts straight after “statements were made that had no connection with reality”. The minister highlighted that a blanket subsidy had been given, halting the transmission of oil price hikes to the public from March 14 to April 4. “It is important to reinforce that a blanket subsidy of Rs129 billion was given,” he asserted, pointing out that funds were sourced through austerity measures, which were also facing a third-party audit. The budget for Public Sector Development Programme (PSDP) was cut by Rs100bn, Aurangzeb noted, adding that dividends and profits were obtained from state-owned enterprises (SOEs). “On the question of whether the deserving segments were taken care of or not, so a targeted subsidy was announced right at that time,” he said, referring to the subsidies aimed at bikers, public transport and small-scale farmers. “We have not just announced the subsidies; the dirbursement are underway and the process had begun on Saturday,” Aurangzeb highlighted. The minister noted that “very constructive suggestions” had come from the treasury and opposition benches. “While we should hope for the best, we have to plan for the worst and hope is not a strategy,” he remarked. PPP’s Sharmila Faruqui decries fuel price hike Speaking on the NA floor before Aurangzeb, PPP’s Sharmila Faruqui decried the recent hikes in petroleum prices. She said that the briefing given by Petroleum Minister Ali Pervaiz Malik before the NA on Monday on the increase in oil prices was not satisfactory and he was “unconvincing”. Since the February 28 strikes by the US and Israel on Iran triggered the war and pushed up global oil prices, fuel prices in Pakistan have reached record highs. In two major hikes, petrol prices have risen from Rs266.17 to Rs378 — after a partial reduction in a recent hike — while those of high-speed diesel have surged from Rs280.86 to Rs520.35. In her speech, Faruqui claimed Pakistan was the first country in the region to increase oil prices. The PPP leader referred to recent addresses by PM Shehbaz and the April 2 press conference by three ministers on the issue of oil prices, saying they showed a lack of consistency in the government’s policies and decisions. Faruqui noted that in his speeches, PM Shehbaz kept on insisting that prices would not be raised and their impact would not be transferred to the people, but then ministers held a press conference and suddenly prices were increased twice. She suggested that the government hire the services of some consultants in order to have consistent policies, highlighting that no one knew how long the economic crisis stemming from the Middle East conflict would last. The PPP MNA noted there was a tax of Rs131 per litre on petrol. “What, after all, is this government’s policy? How does it plan to move forward? The price of diesel is also the highest in the region,” she said. Faruqui added that people were asking them how they were supposed to make ends meet. She contended that the government talked about motorcyclists only, without realising there were other people being affected too. The PPP leader remarked that even she hesitated while buying petrol, wondering what the situation would be for ordinary people and those with small vehicles. The government should reduce the profit margins of petroleum companies and formulate a comprehensive strategy, the PPP lawmaker suggested. MQM-P calls for briefing on regional situation Meanwhile, Javed Hanif of Muttahida Qaumi Movement-Pakistan (MQM-P) demanded that the NA should be given a comprehensive briefing on the possible fallout of the ongoing regional situation so that they can formulate future policies and decisions. Taking part in the debate, Hanif demanded that Deputy PM and Foreign Minister Ishaq Dar, Defence Minister Khawaja Asif, Aurangzeb, and a team of security officials should brief the house on the Middle East conflict and its possible implications for Pakistan. He appreciated Pakistan’s role and its mediatory efforts, saying that everyone was trusting Pakistan and its stature has increased. However, the MQM-P leader said, they should be ready for the situation if these efforts remained fruitless. He regretted that they were discussing the petroleum prices, which he termed a very trivial matter in the whole crisis. He contended that the entire architecture of the region could change in the future and they were only discussing oil prices. “What if the US acts on its threat?” Hanif asked in an apparent reference to the US president’s threats to wipe out Iran. He cautioned that if it happened, then the statehood in Iran would come to an end. He observed that if Iran retaliated, then the economic system of the Gulf countries would collapse, which could cause serious financial problems for Pakistan. “What will happen with our remittances that are sent by some five million Pakistanis?” Hanif asked. The MQM-P lawmaker stressed the need to consider what would happen to national unity, keeping in view the emotional attachment of Pakistanis during the crisis. He was of the view that these issues were more serious than the issue of petroleum prices, which they had been discussing for the last few days. Achakzai suggests formation of ‘national govt’ Separately, National Assembly Opposition Leader Mahmood Khan Achakzai suggested the formation of a “national government” to build consensus among the country’s political parties. Speaking in the NA during a debate on the Iran situation, Achakzai said, “We should agree on some democratic points at least — Parliament will be the source of power, supremacy of the Constitution, policies will originate from here.” Stating that the time had passed when they used to blame each other for mistakes, the opposition leader said, “We will have to move toward a national government.” “We will have to agree on some points. We will have to ask the establishment to give some space,” he said. Pointing out a “most dangerous” concern, Achakzai noted that several key politicians, including President Asif Ali Zardari, Prime Minister Shehbaz Sharif and PML-N President Nawaz Sharif, were now of old age. “God forbid, if these four to five people are not here anymore, the remaining would not be able to do anything,” he added. He called for key politicians, including Zardari, Nawaz, Shehbaz and Imran Khan, to come to the table to discuss national issues. The country, Achakzai said, could only move forward through “collective wisdom”. He maintained that the “establishment” tried to break PTI founder Imran Khan but failed. Achakzai warned of resistance if there was any effort from “within the party or the rulers” to sideline Imran. “Due to our own mistakes, this system is not functional anymore,” claimed Achakzai, also the head of the opposition alliance Tehreek-i-Tahafuz-i-Ayin-i-Pakistan (TTAP). “This system has collapsed; whatever happened after the 2024 elections,” he claimed, referring to the PML-N-led coalition government formed after the Feb 8, 2024, general elections. The opposition leader also pointed out the absence of PM Shehbaz from the house. “Shehbaz Sharif is not here; otherwise, I would have spoken to him,” he said. Lashing out at United States President Donald Trump, Achakzai said one individual wanted to push the entire world into war. He added that the US trusted Pakistan and it should take advantage of that. The opposition leader further said that Afghanistan had been Pakistan’s ally and would remain so. Achakzai suggested that there should be no adjournments and the session should be held continuously, with everyone allowed to speak.
DawnApril 7, 2026 at 11:35 AM UTCSoaring costs, fuel shortage fears drive Pakistan to electric motorbikes
Days after Iran effectively blocked shipping through the Strait of Hormuz following the start of US and Israeli attacks in late February, two Pakistani electric motorbike (EV) outlets 1,400 km away found themselves overwhelmed with enquiries. Haseeb Bhatti, who retrofits petrol-fuelled bikes with battery-powered motors in the northern city of Rawalpindi, said his March sales surged 70 per cent. For Ali Gohar Khan, who owns a 7-year-old electric motorbike retail franchise with branches across Pakistan, the recent surge in sales is the steepest ever. “People have this fear that maybe in the near future, they might not get petrol at all,” Khan said. The Middle East crisis has sent global fuel prices soaring, compounding pain for Pakistanis already hit by inflation and a post-pandemic economic downturn. As the nation imports nearly all its oil through the Strait of Hormuz, shortage rumours took hold despite the government’s supply assurances. Workers assemble an electric motorcycle at D.S. Motors Pvt. Ltd, in Hyderabad, Pakistan April 1, 2026. —Reuters About 40pc of Pakistan’s petrol is used to fuel the 30 million two-wheelers and three-wheeled auto-rickshaws that dominate roads in a country where cars are a luxury and public transport is inadequate. Industry officials and analysts expect the crisis to supercharge an EV rush in Pakistan, which would stand out from a broader regional surge for the availability of cheap and plentiful solar power to charge e-bikes. A switch would also help lower oil imports and bolster foreign exchange reserves, and slash emissions in the world’s most polluted country in 2025. After the government’s 18pc price hike last week, a Pakistani household earning the median wage now pays 31pc of its daily income for a litre of petrol —more than all but 22 of 139 countries tracked by geopetrolprices.com and Our World in Data. “My monthly salary is 30,000 rupees. I can barely cover expenses for my family of six with this. How am I supposed to fill my bike?” said Zahoor Ahmed, a security guard in Karachi. From working professionals to college students, more riders have been turning to EVs in recent months. Last year, higher petrol prices drove up EV sales nearly threefold to 90,000 units or 5pc of all two-wheelers sold, data from consultancy Renewables First showed. A man rides on an electric motorcycle along a road in Rawalpindi, Pakistan, March 30, 2026. —Reuters/File This year, EVs have accounted for more than 10pc of monthly two-wheeler sales for the first time, said Talha Khan, CEO at EV logistics planning company Orko, a transition he expects to accelerate as filling up with conventional fuel can be as much as 10 times more costly than charging. “Keeping inflation and fuel prices in mind, I took matters in my own hands and bought an electric scooter,” said Mehvish Qureshi, a lawyer in Hyderabad. Generous subsidies and interest-free loans A typical electric two-wheeler costs around 250,000 rupees - more than half the annual per capita income for Pakistanis and 56pc more than the popular petrol-fuelled Honda CD 70, which costs about 160,000 rupees. In February, the government’s Pakistan Accelerated Vehicle Electrification (PAVE) plan came into force, providing a subsidy for a fifth of the price and interest-free loans for the rest. The plan targets electric bikes and auto-rickshaws. Sumaiya Rehman, 35, who works at a booking office of a constructon project, starts her electric motorcycle in Hyderabad, Pakistan April 2, 2026. —Reuters It has already received about 270,000 applications —nearly seven times PAVE’s first phase target ending June — Finance Ministry adviser Adnan Pasha told Reuters, adding that the government aimed to finance 2 million EVs over five years and fund the plan with existing levies on fuel sales. “Electrifying just 2 million vehicles could result in nearly half a billion dollars in annual savings, as we don’t have to import that fuel,” Pasha said. Many Pakistanis turned to solar after IMF-driven power tariff hikes in 2023, snapping up cheap China-made panels for their homes. Now the government aims to capitalise on that boom to drive EV growth. “Using solar can reduce electricity costs at charging stations, and make it more affordable to charge at home,” Pasha said. Ammar Habib, an adviser to Pakistan’s power minister, said EVs were also “great for the grid as the steady demand from electric vehicle charging will ease some of the daytime volatility linked to solar oversupply.” Chinese players at heart of EV shift Like its solar revolution, Pakistan’s embrace of electric two-wheelers is built on Chinese brands. Scooter makers such as Yadea and Jinpeng, and e-bikes assembled locally with batteries and components from firms including AIMA and Sunra are expected to meet rising demand. Chinese EV giant BYD, which has partnered with Pakistan’s HUBCO Green to build charging stations across the country, said it plans to support broader electrification to eventually sell more passenger cars. Workers assemble parts of electric motorcycles on the production line at the ZYP Technology’s facility in Lahore, Pakistan, March 12, 2025. —Reuters/File Pasha said the government wants local companies to build charging stations and said he expected the 45pc cut to charging stations’ power tariffs last year to continue boosting adoption. However, financial incentives could come under pressure if the war drags on, while a lack of local expertise and hard-to-scale charging infrastructure are other risks for Pakistan’s EV transition, said Ahtasam Ahmad, energy finance lead at Renewables First. Good servicing networks are critical as EVs are more sensitive to potholes, which are common on roads. In India, riding e-scooters on poorly maintained roads has caused major service backlogs. “When Chinese players flood the market, it may look promising on paper, but with virtually no after-sales service infrastructure, they risk eroding consumer confidence in the technology,” Ahmad said.
DawnApril 7, 2026 at 07:49 AM UTCTight rope act
WITH a war in the region, Pakistan has been at the centre stage of all conversations, negotiations and talks about and around the conflict. For this, there has also been much praise and some heartburn (from some in the neighbourhood). However, Islamabad still needs to be careful; it continues to perform a tight rope balancing act domestically and internationally, as this conflict goes on. And if the hostilities continue, staying upright will be a trick and a half. This is primarily linked to the country’s precarious economic situation and an ‘unpopular’ government struggling to gain a foothold with the people. And as some or many economic experts point out, there is little to fall back on if the world is facing uncertainty in terms of oil prices or other shocks. However successful this government may have been, as we are told continuously, in every aspect. Consider the management of the petrol prices. The somersaults by the government have been quite remarkable. It began by being one of the first in the region to act decisively once the international prices went up by hiking the price by Rs55. At that point, the government defended its move by arguing that it was not possible to take any other decision, but for the next couple of weeks, it moved to a different tactic. The prime minister himself came on air to announce that he was not passing on the price, while a story in Dawn reported that he told his colleagues that he and the army chief had agreed to not pass on petrol price hikes for the near future. Government representatives were at pains to explain this ‘subsidy’ could not go on forever but there was little clarity on how long this would last and what would come next. Then came a spate of meetings as Islamabad tried to convince the provincial governments to share the burden, from funding the subsidy to providing relief. But even then, few expected the bombshell. Late Thursday night, which just passed, three government ministers announced a raise in prices that overshadowed the previous hike. The next day wasn’t easy for the people or for the government, it seems, because within 24 hours, the prime minister turned up on television again. He announced a new lower price, explaining that he had reduced the tax on the fuel. The government was targeted for being indecisive — and rightly so. The government was targeted for being indecisive — and rightly so. The explanation from government quarters that the tax could only be lowered after permission from the IMF (which apparently came a day later) is not really being bought. In addition, it has highlighted once again the government’s failure in reducing its expenses or widening the tax base, which forces it to impose high indirect taxes on fuel. This was emphasised by an interview of the petroleum minister in which he acknowledged that there should be accountability of those who agreed to these revenue targets and then failed to meet them. In fact, questions are being raised whether the government is a house divided or if there are serious reservations within about some key people. It is hard to say how serious the blame game is. But it is worth asking whether recriminations will intensify if oil prices go up further and other economic shocks make the tight rope walking even more difficult. After all, news about the possible impact on exports, balance-of-payments and inflation is yet to become visible. Add to this, the people and the situation becomes even more wobbly. Can the petrol price be the final straw on the camel’s back? No one can predict for sure but the fear is always there that the next economic shock will lead to chaos on the streets. That the powers that be share this fear is evident from their overreaction to any protest. Just consider that the Federal Constitutional Court has taken notice of the Imran Rehai Force, a kooky idea of Chief Minister Sohail Afridi that even the PTI didn’t take seriously. However, the court wants to know more about it and there are guesses galore about why this is so. But the economic balancing act is simply not limited to the domestic headaches. Even internationally, the country, with its weak economy, moves to please many Pied Pipers, struggling to ensure no tune is ignored. There is the Fund and the US, at one end, then friends in the Gulf on the other, as well as those further east. The recent fracas was over the UAE loan, which Islamabad has ‘decided’ to return if reports are to be believed. A loan that was given in the 1990s and now is being returned because the UAE is apparently no longer interested in rolling it over is being linked to Islamabad’s policy of maintaining relations with the Gulf Arab states as well as Iran. There are reports that the UAE (and perhaps others) are not happy that Islamabad is trying to balance its various relations, especially maintaining an even keel with its immediate neighbour Iran. Upsetting anyone in the Gulf comes with its own economic costs, while relations with Iran can impact the Shia community within the country. Along with this, there are concerns about what it will mean for Pakistan if there is a different regime in Tehran. Indeed, if any of the friends or benefactors in the Gulf take offence at the support for Iran or Pakistan’s refusal of any demand, the economic situation for the government can become more difficult. And the longer the conflict goes on, the more complicated this delicate balancing act can become. Especially, if the US also decides to take a second look at Pakistan’s role. Indeed, the conflict in the Middle East may be tough for the world but it is taking its own toll on Islamabad. The sooner it ends, the better it is for the country. The writer is a journalist. Published in Dawn, April 7th, 2026
DawnApril 7, 2026 at 03:45 AM UTCOpposition chides, govt defends increase in oil prices
ISLAMABAD: The opposition in the National Assembly on Monday slammed sharp increase in petroleum prices while the government defended the decision which it said was warranted by fluctuation in international oil market. At the very outset of the proceedings, opposition lawmaker Shahid Khatak demanded suspension of question hour to discuss hike in petroleum prices, with many other members of the House supporting the view and subsequently the question hour was suspended. Petroleum Minister Ali Pervaiz Malik told the House that oil prices substantially increased in the global market after the US-Israeli war against Iran, but the government bore the burden of rising oil prices for three weeks, coming to Rs50-60 billion per week. He said the national leadership, in consultation with the provinces, decided to increase petroleum prices while providing targeted subsidies to vulnerable segments of society. Petroleum minister tells lawmakers oil being imported via Yanbu and Fujairah ports, too The minister said the country meets 80 to 90 per cent of its petroleum demand through imports. He said the war in the Middle East has adversely affected global energy supply chains. He further said the government has ensured an uninterrupted supply of petroleum products by using alternative routes. He said Pakistan is now importing oil via the Yanbu port in Saudi Arabia and Fujairah port in the UAE through Oman. He said the cost of insurance and transportation has also gone up because of the war. He said while the high price of oil was a challenge, there was no shortage of petroleum products in the country. Fertiliser stocks Regarding fertiliser availability, Ali Pervaiz Malik said an uninterrupted gas supply was being ensured to all 10 fertiliser factories. He said the prime minister has issued directives to maintain fertiliser availability at Rs4,500 per bag. Briefing the House on the targeted subsidy, the minister said millions of rupees were being disbursed to motorcyclists, passengers, goods transporters, and farmers through digital wallets. He asked members to check their mobile phones for crude oil prices, saying crude oil had gone from $70 to $170. PTI’s parliamentary leader Shahid Khattak raised the issue of increase in petroleum prices. Speaker Ayaz Sadiq allowed the opposition member to speak on the issue. JUI’s Noor Alam Khan also raised the issue, asking the finance minister to explain why petroleum prices were increased if the economy was growing. MQM’s Aminul Haque demanded a discussion on the issue. Speaker Ayaz Sadiq said they would have a discussion on petroleum prices instead of pointing fingers. PPP’s Naveed Qamar said the House represents the whole country, and if they don’t take the House into confidence, what would happen? The House suspended the Question Hour for a discussion on petroleum prices. Finance Minister Muhammad Aurangzeb gave a policy statement, saying they planned immediately after the Iran attack and had been taking measures for five weeks. Petroleum Minister Ali Amin Khan briefed the House, saying they took measures to protect people from price shocks and provided over Rs100 billion in subsidies. He said the government bore the burden of prices for two to three weeks. Ali Amin Khan said they had to plan considering new circumstances, and the prices of everything had increased worldwide. He thanked the Saudi government for providing oil through special routes. Highest in region PTI Chairman Barrister Gohar Ali wanted to know why the increase in petroleum prices was highest in the region. He said India asked the petroleum companies to lower their profit margin and questioned as to why it was not done by Pakistan. He accused the government of punishing the people for not voting for it. He also chided Punjab Chief Minister Maryam Nawaz for what he called “taxing the cow dung” to meet expenses of a recently purchased luxury jet. MQM parliamentary leader Dr Farooq Sattar observed that the government needed to take extraordinary measures along with basic economic reforms to cope with the ongoing situation. He proposed doing away with petroleum levy and heavy custom duties. “Every opposition party criticises petroleum levy but when it comes to government collects the same levy as easy money to generate revenue,” he said. The MQM lawmaker also demanded the government to expand tax collection net by taxing every taxable income to provide relief to the masses. Mehtab Akbar Rashdi of PPP criticised the government for increase in prices of diesel and petrol saying the decision had put people in great trouble. Published in Dawn, April 7th, 2026
DawnApril 7, 2026 at 02:24 AM UTCIMF asks Pakistan to remove fuel price distortions amid subsidy pressures
ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan to eliminate distortions in petroleum pricing at the earliest, even though it had tacitly accepted the Rs152 billion subsidy cap extended by the federal government to consumers amid a historic global price surge following the US-Israel attacks on Iran and the closure of the Strait of Hormuz. Senior officials told Dawn that the staff-level agreement (SLA) announced by the IMF on March 29 remains intact, and that the Rs152 billion federal petroleum subsidy had been introduced with the Fund’s prior knowledge. Sources said Finance Minister Muhammad Aurangzeb and his team will update IMF management on provincial contributions to the petroleum subsidy during the upcoming spring meetings of the IMF and the World Bank next week. However, the IMF continues to oppose across-the-board subsidies on major petroleum products. Initially, the government attempted to balance finances by adjusting the petroleum development levy (PDL) between petrol and diesel. It later moved toward targeted subsidies, now being financed by provinces through rationalization of their respective budgets. A senior government official confirmed that the IMF remains concerned about existing distortions, particularly in diesel pricing, and is pushing for their early removal. The loss in PDL on diesel, currently zero compared to the Rs80 per litre envisaged in the budget, is being offset by higher rates on petrol. However, this cushion has diminished after the prime minister reduced petrol prices by Rs80 per litre on Friday, and the situation will need to be reassessed in the coming days. Higher petrol consumption has partially offset the erosion in diesel PDL. Petrol consumption currently averages around 660,000 tonnes per day, compared to about 600,000 tonnes for diesel. However, diesel demand is expected to rise during the ongoing harvest season. Officials noted that economic indicators for the current fiscal year are broadly aligned with programme targets. However, significant adjustments will be required in next year’s macroeconomic framework, to be finalized in consultation with the IMF ahead of the federal budget for 2026–27. They added that petroleum differential claims of the oil industry had already exceeded Rs129 billion but have now ceased following recent price increases that fully passed on import costs. Payments to oil companies and refineries are being made with a 10% retention, pending audit verification. Pakistan currently holds about 590,000 tonnes of petrol and 480,000 tonnes of diesel in stock, equivalent to roughly 26 days of petrol coverage and 20 days for diesel. A petrol cargo of about 70,000 tonnes and two diesel cargoes totaling 140,000 tonnes are in transit, though the balance of payments remains a growing concern. Officials also said discussions on reviving diesel imports from Kuwait progressed last week, but shipments have yet to begin despite Iran allowing 20 Pakistan-flagged vessels to pass through the Strait of Hormuz. In response to another query, an official said Ogra has implemented a mechanism for settling Price Differential Claims. Under this system, 10pc of claims are retained until cross-verification with the Federal Board of Revenue and monthly third-party audits of stock positions conducted by PricewaterhouseCoopers. Published in Dawn, April 6th, 2026
DawnApril 6, 2026 at 02:46 AM UTCPM Shehbaz urges provinces to release funds for fuel subsidies
ISLAMABAD: Prime Minister Shahbaz Sharif on Sunday urged provinces to release their funds for the fuel subsidies to facilitate motorcyslists, and public and goods transport amid the unprecedented energy crisis in the country. The federal government on Thursday announced the targeted relief measures to provide subsidised fuel, ending the blanket subsidy for all economic classes. The provinces are taking the lead in administering subsidised fuel quotas. Altogether, the provinces are pooling around Rs200bn for three months on the pattern of their National Finance Commission (NFC) shares – Rs100bn or so from Punjab, Rs51-52bn from Sindh, Rs15bn from Khyber Pakhtunkhwa and about Rs8-9bn from Balochistan. Presiding over a meeting to review austerity measures, the PM Shehbaz lauded Balochistan Chief Minister Sarfaraz Bugti for disbursing the provincial share in the PM’s austerity package. A press release issued by the Prime Minister’s Office (PMO), quoted the prime minister as saying: “Balochistan’s government has already paid the decided share in the package, which is commendable. “I hope that other provinces will also pay their share soon,” he said. The prime minister said the government has started the disbursement of subsidies to the owners of motorcycles, trucks and public buses transparently and securely through digital wallets. It said that that the government had initially decided to start the disbursement from Monday, but the process was initiated on Saturday. It was informed that all provinces had provided details to the centre regarding the number of public transport buses, goods transport and trucks. PM Shehbaz said the government was taking, and would continue to take, all possible measures to provide relief to the public during these challenging times. He reviewed progress on the implementation of government subsidies on petroleum products amid recent regional tensions. The meeting was briefed on the progress of subsidy provision, as well as on the country’s fuel reserves and consumption. The premier said passenger buses were being provided a monthly subsidy of Rs100,000, while minibuses and wagons were receiving Rs40,000 per month to prevent an increase in fares. To control the rise in prices of essential food items, trucks were being given Rs70,000, large freight vehicles were being given Rs80,000, and delivery vans were being given Rs35,000 per month as a subsidy, he added. The prime minister said a public relief package worth Rs129 billion had been provided over the past three weeks, adding that the government would not abandon the public in this difficult time. He further stated that immediate relief was provided by reducing the petroleum levy by Rs80 per litre. He said that Pakistan Railways was providing a subsidy of Rs6 billion, due to which there was no increase in the fares of passenger and freight trains. He said the quarterly 25 per cent increase in toll tax had also been withdrawn. The meeting was informed that sufficient fuel reserves were available in the country to meet national requirements. A report was also presented by the Intelligence Bureau (IB) on the implementation of the government’s austerity measures.
DawnApril 5, 2026 at 01:21 PM UTC‘ME war compounds Asia humanitarian crises’
• UN says import-dependent countries facing higher fuel, power and farm input costs • UNOCHA seeks $151m for Pakistan flood response targeting 1.9m people ISLAMABAD: The escalation in the Middle East since February is generating spillover effects across Asia and the Pacific, compounding humanitarian crises, according to the United Nations. Higher fuel prices are increasing transport, electricity and agricultural input costs in import-dependent countries such as Pakistan, Sri Lanka, Bangladesh and the Philippines. The main impact stems from rising oil prices following reduced traffic through the Strait of Hormuz, which carries 20 per cent of the world’s oil supply, much of it destined for Asia. In its latest bulletin, the UN Office for the Coordination of Humanitarian Affairs (UNOCHA) says it needs $151 million for humanitarian assistance in Pakistan to implement the floods support plan, under which 1.9m people have been targeted to be assisted out of 2.8m people in need. Fuel and wheat price shocks are feeding rapidly into inflation and wider food price pressures in Pakistan, with fuel and wheat flour prices rising. With 77 per cent of the country’s energy imported, higher oil prices are rising transport, fertiliser and milling costs. Higher freight, insurance and border-related disruptions are adding further strain to supply chains and the broader economy. Maritime war-risk insurance has risen by 25 to 50pc, reducing vessel traffic and further disrupting regional supply chains, including for landlocked countries such as Afghanistan. The crisis is also heightening food security risks in import-reliant countries, with price increases reported for wheat and agricultural fertilisers. Up to one-third of global trade in fertiliser raw materials passes through the Strait of Hormuz, UNOCHA says. Disruptions to ammonia and nitrogen shipments are threatening food production systems dependent on fertiliser imports. Sustained increases in fuel, transport and food prices are also likely to raise the cost of humanitarian operations in Afghanistan, Bangladesh and Myanmar amid shrinking funding. Maritime uncertainty and airspace restrictions are affecting humanitarian logistics. The World Food Programme (WFP) estimates that, if the crisis persists until mid-2026 and oil remains above $100 per barrel, nearly 45m additional people could face acute food insecurity globally, including 9.1m in Asia. The WFP has warned that the total number of people around the world facing acute levels of hunger could reach record numbers in 2026 if the escalation in the Middle East continues to destabilise the world’s economy. New analysis by the WFP estimates that almost 45m more people could fall into acute food insecurity or worse if the conflict does not end by the middle of the year, and if oil prices remain above $100 a barrel. These would add to the 318m people around the world who are already food insecure. Although the conflict is centred on a global energy hub rather than a major food-producing region, its potential impact is similar due to the close link between energy and food markets. In many parts of the world, vulnerable families currently managing to secure basic food may soon struggle to afford even minimal sustenance, the WFP says. “If this conflict continues, it will send shockwaves across the globe, and families who already cannot afford their next meal will be hit the hardest,” said WFP Deputy Executive Director and Chief Operating Officer Carl Skau. “Without an adequately funded humanitarian response, it could spell catastrophe for millions already on the edge.” Published in Dawn, April 5th, 2026
DawnApril 5, 2026 at 03:08 AM UTC