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 the face 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 reinstating several austerity and energy-saving measures implemented during the COVID-19 pandemic.
The government is also planning a strict action against hoarding and smuggling of petrol and diesel. Recommendations have been drawn up to also introduce homework in business and 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 courses in educational institutions, work-from-home policies and limited participation in government offices with the exception of the health sector.
Government meetings are expected to be held virtually, while the number of public holidays may be increased in the first phase following the model adopted during the Covid-19 pandemic.
The government has drawn up a three-phase strategy. In the first phase, energy-saving measures are implemented within the public sector. In the second phase, private schools, universities and hospitals can adopt online assignments and remote work.
Sources said that three to four dozen proposals have been prepared and will be presented to the Prime Minister for final approval today. 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 aimed at maintaining Pakistan’s economic stability in the face of rising international tensions and their possible economic consequences.
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 cost-cutting measures would not apply to the industrial and agricultural sectors to ensure that domestic production, exports and food security remain unaffected.
The Prime Minister emphasized that the burden of austerity should be shared fairly by all sections of society, and especially called on the privileged and elite classes to lead by example by accepting the necessary adjustments.
Officials presented several proposals and recommendations focusing on savings 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 sufficient reserves of diesel, petrol and other petroleum products and that the government had already made advance arrangements to deal with any potential emergency.
Officials informed the prime minister that the current regional situation could affect the country’s economy, especially energy supplies and price fluctuations in the 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 protect the national economy.
Shehbaz reaffirmed the government’s commitment to protect public interests and ensure economic stability despite the challenging circumstances.
He directed the federal cabinet, elected representatives at both federal and provincial levels and senior officials to play their full role in providing relief to the public and ensuring efficient use of national resources.
He also directed ministers and government employees to adopt austerity and simplicity in official affairs, stressing the need for prudent use of national resources in difficult times.
The Prime Minister said that once the current challenges were overcome and the economy became more stable, the government would provide maximum relief to the public.
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 reach the country on Monday (today), but warned that any further disruption could strain supplies, raise the country’s import bill and put further pressure on the national economy.
The federal outreach to the provinces came a day after Prime Minister Shehbaz Sharif asked the two ministers to work with provincial governments on a strategy to conserve fuel and ensure uninterrupted supply amid concerns sparked by the growing 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.
The participants were briefed on rising international oil prices and the country’s fuel reserves. Federal officials warned that if tensions in the Middle East intensify further, the price of crude could rise to $120 a 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 the international energy markets and drawing up contingency plans to manage the economic consequences.
Oil Minister Malik informed the participants that three cargoes 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 to key sectors.
Officials also expressed concern over possible hoarding at gas pumps, prompting federal and provincial authorities to agree to strengthen coordination to prevent artificial shortages and ensure even distribution of petroleum products across the country.
The meeting was also informed that Qatar had declared “force majeure”, raising concerns over potential disruptions to liquefied natural gas (LNG) supplies. Officials said diplomatic contacts had been intensified to explore alternative supplies and secure routes.
To improve oversight 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 with the aim of managing fuel consumption more effectively while ensuring that economic activity continues without major disruptions.
Speaking on the occasion, Chief Minister Murad Ali Shah emphasized the importance of responsible energy use and public cooperation and said 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 further discussion and decision.
Separately, Chief Minister Maryam Nawaz also reviewed supply, demand and reserves of petroleum products during the meeting with the 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 emphasized the need to ensure uninterrupted diesel supply for agricultural use.
She instructed the authorities to implement strict measures against the hoarding of petroleum products. She also ordered district administrations to continuously monitor fuel supplies and ensure that petrol pumps do not sell petroleum products above 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 petrol pumps,” she said, calling for national unity in dealing with the challenges posed by the global energy crisis.
Officials also briefed the meeting on existing reserves of gasoline, diesel, LNG and other fuels and warned that immediate conservation and conservation measures were inevitable in light 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 ensure Pakistan’s economic stability.
(With input from our correspondents in LAHORE AND KARACHI)
