The deteriorating security situation in West Asia is now affecting Pakistan’s economy as well. Pakistan’s Finance Minister Mohammad Aurangzeb has said that due to the current crisis, the country’s monthly oil import bill may increase to around $600 million. In view of rising prices and supply crisis, the government is also working on alternative plans.
Oil import bill may increase due to West Asia crisis
Pakistan’s Finance Minister Mohammad Aurangzeb told in a meeting that due to the ongoing conflict in West Asia, Pakistan’s monthly oil import bill may reach about 600 million dollars. Petroleum Minister Ali Pervez Malik and Sindh Chief Minister Murad Ali Shah were also present in this meeting. He said that if the conflict escalates further, crude oil prices may go up to $ 120 per barrel, which will increase further pressure on Pakistan’s economic condition.
Demand for relief in petroleum levy from IMF
Petroleum Minister Ali Pervez Malik said that the government will request the IMF for relief in petroleum levy. He also said that the government is planning to implement fuel saving measures so that the existing reserves can last longer.
Fear of disruption in LNG supply
The minister said that three petroleum shipments are expected to reach Pakistan on Monday, but there is also a possibility of disruption in the supply of liquefied natural gas (LNG). The government has begun diplomatic talks with Oman, Saudi Arabia, and the United Arab Emirates to find alternative supply routes. Apart from the Strait of Hormuz which is under the control of Iran, other routes are also being considered.
Huge increase in fuel prices in Pakistan
Amidst the West Asia crisis, the Pakistan government has increased the prices of fuel significantly. The prices of petrol and high-speed diesel have been increased by Pakistani rupees 55 per liter, which is an increase of about 20 percent. According to the new rates, the price of petrol has reached Rs 321.17 and the price of high-speed diesel has reached Rs 335.86 per liter.
danger of rising inflation
This increase in fuel prices has increased the problems of common people. Especially in the month of Ramadan, concern has increased among the people regarding rising inflation. Experts believe that due to cost of fuel, the cost of transportation and logistics will increase, due to which the prices of food items and essential goods may also increase.
The government said it was a compulsion
Pakistan’s Deputy Prime Minister Ishaq Dar said that due to the rise in oil prices in the international market, the government had no option but to increase the prices. He said that this step was necessary to keep the country’s energy system stable and to fulfill the agreements made with the IMF.
