ISLAMABAD:
The federal government has finalised a phased national energy conservation action plan to reduce the demand for imported petroleum products and re-liquefied natural gas (RLNG) in view of the closure of the Strait of Hormuz and fears of an energy crisis.
An emergency meeting to review the plan in light 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 reintroducing several austerity and energy-saving measures that were implemented during the COVID-19 pandemic.
The government is also planning strict action against the hoarding and smuggling of petrol and diesel. Recommendations have been prepared to introduce work-from-home arrangements in the corporate sector and private institutions as well.
Authorities have also decided to continuously monitor global oil prices and supply conditions. Under the proposed strategy, LNG, LPG and natural gas will be supplied on a priority basis to essential sectors.
The proposals include introducing online classes in educational institutions, work-from-home policies, and limited attendance in government offices except for 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 devised a three-phase strategy. In the first phase, energy-saving measures will be implemented within the public sector. In the second phase, private schools, universities and hospitals may adopt online assignments and remote working arrangements.
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 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 emphasized that austerity and cost-saving measures would not apply to the industrial and agricultural sectors to ensure that domestic production, exports and food security remain unaffected.
The PM emphasised that the burden of austerity should be shared fairly by all segments of society, particularly urging privileged and elite classes to set an example by accepting necessary adjustments.
Officials presented several proposals and recommendations focused on austerity 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 adequate reserves of diesel, petrol and other petroleum products, and 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, particularly energy supplies and price fluctuations in international markets.
The PM stressed 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 safeguard the national economy.
Shehbaz reaffirmed the government’s commitment to protecting public interests and ensuring economic stability despite the challenging circumstances.
He directed the federal cabinet, elected representatives at both federal and provincial levels, and senior government officials to play their full role in providing relief to the public and ensuring the efficient use of national resources.
He also instructed ministers and government employees to adopt austerity and simplicity in official matters, emphasizing the need for prudent use of national resources during difficult times.
The PM 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 Petroleum 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 place additional pressure on the national economy.
The federal outreach to the provinces came a day after Prime Minister Shehbaz Sharif directed the two ministers to work with provincial governments on a strategy to conserve fuel and ensure uninterrupted supply amid concerns triggered by the widening 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 warned that if tensions in the Middle East intensify further, the price of crude oil could rise to $120 per barrel, which could significantly increase Pakistan’s import costs.
Aurangzeb told the meeting that Pakistan’s monthly oil import bill could increase 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.
Petroleum Minister Malik informed participants that three petrol cargoes were expected to arrive in Pakistan by Monday (today), but cautioned that conservation measures would still be necessary to ensure existing fuel reserves last longer and remain available for essential sectors.
Officials also expressed concern about possible hoarding at petrol pumps, prompting federal and provincial authorities to agree on strengthening 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 about potential disruptions in 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 petroleum reserves and supply patterns in real time.
Emergency energy conservation measures were also discussed during the meeting, aimed at managing fuel consumption more efficiently while ensuring that economic activity continues without major disruption.
Speaking on the occasion, Chief Minister Murad Ali Shah stressed the importance of responsible energy use 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 before the provincial cabinet for further deliberation and decision.
Separately, Chief Minister Maryam Nawaz also reviewed the supply, demand and reserves of petroleum products during the meeting with the ministers, officials said.
The meeting agreed on adopting a conservation policy to maintain a balance between the supply and demand of petroleum products in the province. The chief minister emphasised the need to ensure uninterrupted diesel supply for agricultural use.
She directed the authorities to carry out a strict crackdown on 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 queues at petrol pumps,” she said, calling for national unity in dealing with the challenges created by the global energy crisis.
Officials also briefed the meeting on existing reserves of petrol, diesel, LNG and other fuels, warning that immediate conservation and austerity measures were unavoidable in view 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 safeguard Pakistan’s economic stability.
(WITH INPUT FROM OUR CORRESPONDENTS IN LAHORE AND KARACHI)
