Govt eyes coordinated response to soaring fuel prices

March 26, 2026 (MLN): Pakistan’s top civil and military leadership moved to align economic, energy, and security responses as rising global oil prices and supply constraints threaten to intensify inflation and strain the country’s external account.

The consultative huddle at Aiwan-e-Sadr was chaired by Asif Ali Zardari and attended by Shehbaz Sharif and Asim Munir, along with key federal ministers overseeing finance, petroleum, and economic affairs.

The impact of volatility in global oil and gas supplies on Pakistan’s economy was assessed, with a focus on managing inflationary pressures and ensuring energy security, according to the press release.

Given Pakistan’s heavy reliance on imported fuel, fluctuations in international prices directly affect domestic petroleum costs, transport expenses, and electricity tariffs.

Finance and petroleum authorities briefed participants on measures under consideration to stabilise petroleum prices, limit spillover effects across sectors, and maintain fiscal discipline through expenditure controls.

Rising fuel costs remain a key risk to inflation, particularly through their impact on food and logistics.

The discussion also covered the broader regional environment and its implications for Pakistan’s economic outlook and food security, highlighting the risk of supply disruptions and elevated import costs.

The need for coordinated policymaking, linking economic management with energy planning and security considerations, while also pointing to demand-side steps such as reducing fuel consumption, promoting public transport, and encouraging ride-sharing.

The deliberations reflect increasing pressure on policymakers to contain inflation and manage external vulnerabilities as global energy markets remain uncertain.

Copyright Mettis Link News