Pakistan Admits Energy Weakness: ‘We Are Not Like India,’ Says Minister Amid Oil Crisis

Islamabad: Pakistan's Petroleum Minister Ali Pervaiz Malik has given a clear and shocking statement regarding the energy situation of the country. He said that Pakistan does not have a strategic oil storage system like India; hence, it cannot face the global oil crisis in the same way. His statement has raised many questions on the energy policy of the country.

Why was the comparison made with India?

Referring to India directly, the minister said that India has already made preparations. India has sufficient foreign exchange reserves and strategic oil storage, due to which it can handle the impact of sudden rising prices to some extent. At the same time, Pakistan has limited such resources, due to which the situation becomes more difficult.

How many oil reserves does Pakistan have?

According to the report, Pakistan has crude oil reserves only for a few days. Generally it can last for 5 to 7 days, whereas refined fuel is available only for a few weeks. In such a situation, if there is a major disruption in the supply chain, the country may have to face an immediate crisis.

How much impact has the global situation had?

Rising tensions in the Middle East and especially the situation around the Strait of Hormuz have pushed oil prices sharply higher. This route is considered very important for oil supply in large parts of the world. As the threat increases here, it directly impacts import-dependent countries like Pakistan.

Why is the economic situation becoming difficult?

Pakistan is already under economic pressure and is under the program of International Monetary Fund (IMF). In such a situation, the government does not have much scope to control prices or give subsidies. Rising oil prices directly burden the public.

How much has the oil import bill increased?

It is being told that Pakistan's weekly oil import bill has reached around 800 million dollars. This increase is putting further pressure on the country's weak economy and is creating new challenges for the government.

Could the situation worsen further?

If the global situation remains like this, the situation may become more difficult for Pakistan. At present the government has limited options and it will have to work on short-term relief as well as long-term strategy.