Key Takeaways
- Federal Petroleum Minister Ali Pervez Malik warns against continuing unconditional petrol subsidies.
- Minister says the financial burden of global oil prices is too large.
- Malik plans to visit Saudi Arabia to discuss oil supply and address upcoming economic challenges.
Federal Petroleum Minister Ali Pervez Malik has stated that the federal government cannot continue providing unconditional subsidies on expensive petrol, citing the significant financial burden of global oil prices.
Speaking to workers in his constituency, Malik emphasized that the country cannot confront the 'oil storm' through unconditional subsidies, as the financial strain is too great.
He warned that spending without securing the necessary funds could lead to a situation similar to 2022, when Pakistan faced severe economic pressure and inflation.
Malik explained that petrol prices in Pakistan are linked to international oil prices and are not changed at his discretion, adding that any decline in global oil prices would be reflected in domestic prices as well.
The minister is scheduled to visit Saudi Arabia next week to thank the country for its oil supply and to express solidarity during the current difficult situation.
Malik highlighted that Pakistan is facing major challenges in the coming months, particularly during December, January, and February, and has already briefed Prime Minister Shehbaz Sharif on the issues expected during this period.
He added that the government also plans to address the expected gas shortage by arranging timely liquefied petroleum gas (LPG) supplies.
Malik stressed the need for the government to first arrange resources before increasing spending, to avoid the economic pressures faced in 2022.
