ISLAMABAD: Pakistan is set to unveil an austerity plan tomorrow, Monday, as surging global oil prices, driven by United States and Israeli strikes on Iran, mount pressure on Prime Minister Shehbaz Sharif’s government to curb spending and stabilize the economy, the PM’s office said on Sunday.
The development follows an increase of Rs55 ($0.20) per liter in the prices of petrol and diesel in Pakistan this week as the Strait of Hormuz, which supplies a fifth of the global oil consumption, faces disruptions due to US-Israeli strikes on Iran and Tehran’s counter attacks on US interests in the Gulf region.
Pakistan’s Petroleum Division was directed to submit daily stock reports, while the country’s Oil and Gas Regulatory Authority (OGRA) was tasked with maintaining strict market oversight, officials said this week, as oil rose above $90 a barrel globally, the highest in years.
Sharif on Sunday presided over a meeting to review measures to stabilize the economy amid the Middle East conflict, with officials saying global supply disruptions and price fluctuations may have an impact on Pakistan, according to the prime minister’s office.
“In view of the recent international situation, timely implementation of measures is essential for the country’s economic stability,” Sharif was quoted as saying at the meeting. “The government is constantly monitoring the situation and all necessary decisions will be taken to provide all possible stability to the national economy.”
