ISLAMABAD: Prime Minister Shehbaz Sharif has constituted an 18-member high-level committee to oversee the impact of rising international oil prices on the country’s economy in the wake of the US-Israel attack on Iran.
According to a notification issued by the Prime Minister’s Office on Monday, the committee has been formed after international oil prices showed an upward trend amid the evolving regional situation.
The prime minister constituted the body to monitor price volatility and devise a mitigation strategy for Pakistan’s economy, the notification said.
Oil prices soared and stocks fell in Asia on Monday after US-Israeli strikes on Iran sent investors fleeing the prospect of an extended conflict in the crude-rich Middle East.
Brent briefly spiked almost 14% and West Texas Intermediate nearly 12% at the start of business after the attack on the Islamic Republic, which martyred supreme leader Ayatollah Ali Khamenei and other senior officials.
The bombings have also seen the vital Strait of Hormuz — through which around 20% of global seaborne oil passes — effectively shut and several ships attacked, fanning supply fears.
Meanwhile, the notification stated that Federal Minister for Finance and Revenue Muhammad Aurangzeb has been appointed as the convener of the committee.
Its members include the minister for petroleum, minister for power, minister of state for finance, the governor of the State Bank of Pakistan, secretaries of petroleum, power and finance, the chairman of the Federal Board of Revenue, the special secretary to the prime minister, the chairman of the Oil and Gas Regulatory Authority, the managing director of Pakistan Refinery Limited, the head of supply chain of Pakistan State Oil, the head of Pakistan LNG Limited, the managing directors of SNGPL and SSGC-LPG, and representatives of the Inter-Services Intelligence and the Intelligence Bureau.
According to the notification, the committee will closely monitor forward and futures prices of petroleum products and assess the predictability of the supply chain in view of the current conflict in the region.
It will also determine the foreign-exchange implications of oil price volatility for the short and medium term and suggest measures to ensure that petroleum supply remains uninterrupted and markets stay adequately supplied.
The committee has further been tasked with carrying out a detailed analysis of the fiscal impact in the event of a prolonged conflict and reviewing the broader effects of the war on Pakistan’s economy.
The notification said the committee will meet daily and submit its report to the prime minister, and may co-opt any additional members if required to fulfil its mandate.
The Petroleum Division will notify the committee and provide secretarial support.
