ISLAMABAD: Prime Minister Shehbaz Sharif has established an 18-member high-level committee to assess and manage the economic impact of rising global oil prices following escalating tensions in the Middle East.
According to an official notification issued by the Prime Minister’s Office on Monday, the committee has been tasked with monitoring international oil price volatility and developing a strategy to shield Pakistan’s economy from potential shocks.
Finance Minister to Lead Committee
Federal Minister for Finance and Revenue Muhammad Aurangzeb has been appointed convener of the committee. The body includes key stakeholders such as the ministers for petroleum and power, the minister of state for finance, the governor of the State Bank of Pakistan, senior secretaries from the petroleum, finance and power divisions, and heads of major energy and regulatory institutions.
Representatives from intelligence agencies have also been included in the panel.
Focus on Supply, Forex, and Fiscal Impact
The committee will closely monitor forward and futures prices of petroleum products, evaluate supply chain stability, and assess the foreign exchange implications of sustained oil price volatility.
It has been directed to recommend measures to prevent fuel shortages and ensure uninterrupted petroleum supply across the country. Additionally, the body will conduct a detailed analysis of the potential fiscal impact if regional hostilities persist and review broader economic consequences for Pakistan.
Global Oil Markets React
International oil markets surged sharply at the start of the week amid fears of prolonged instability in the oil-rich Middle East. Brent crude and West Texas Intermediate recorded significant spikes in early trading, while Asian stock markets declined.
Concerns have intensified over the Strait of Hormuz — a critical maritime route through which roughly one-fifth of global seaborne oil passes — raising fears of supply disruptions.
Daily Monitoring and Reporting
The committee will meet on a daily basis and submit regular reports to the prime minister. It has also been authorized to co-opt additional members if required. The Petroleum Division will provide administrative and secretarial support to facilitate its operations.
The move underscores the government’s effort to proactively manage economic risks stemming from regional geopolitical instability.
