Govt mulls over oil imports via pipelines
Pakistan is mulling over alternative options for oil supply from Saudi Arabia and the United Arab Emirates (UAE) through pipelines in case the Strait of Hormuz is shut down owing to the Israel-Iran conflict.
Saudi Arabia has an existing oil pipeline network, including the East-West Pipeline (Petroline), which supplies crude oil from the eastern province to the Red Sea port of Yanbu. The UAE oil pipeline to Fujairah, also referred to as the Abu Dhabi Crude Oil Pipeline (Adcop), is a strategic infrastructure project designed to bypass the Strait of Hormuz and ensure safe oil exports.
Finance Minister Muhammad Aurangzeb on Monday chaired the inaugural meeting of a high-level committee constituted to monitor petroleum prices amid escalation in regional tensions.
Sources told The Express Tribune that the Petroleum Division in a report said that the Strait of Hormuz supplies 20% of global crude oil and in case Iran shuts it down, the oil supply to the world could be affected, including Pakistan. It will be the worst-case scenario when oil prices could touch $100 to $150 per barrel.
It was highlighted that there was no immediate threat of higher oil prices and Pakistan was also engaged in talks with world oil suppliers to ensure smooth supplies.
At present, the abandoned power plants have furnace oil storages for up to one million tons. Experts suggest that the government should store oil in these storages. It has been proposed that the government can buy the storages as the power sector plans to sell them in scrap.
According to a statement, in response to the evolving geopolitical situation following Israel's recent attack on Iran and the resulting volatility in international oil markets, Prime Minister Shehbaz Sharif has constituted a high-level committee to monitor petroleum product pricing and supply dynamics. The committee is headed by the finance minister and includes senior representatives from key federal ministries, regulatory authorities and energy sector experts.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
40 minutes ago
- Express Tribune
Govt unveils major plan to end Rs1.2tr circular debt
The federal cabinet on Wednesday gave the green light to Pakistan's largest financial restructuring scheme aimed at eliminating the crippling circular debt in the power sector. Prime Minister Shehbaz Sharif chaired the federal cabinet meeting at the Prime Minister House and approved a series of key decisions ranging from energy sector reforms to diplomatic and institutional recognitions, a Prime Minister's Office news release said. The Debt Plan, designed to restore financial stability in the energy industry without burdening the national budget, aims to eliminate Rs1,275 billion in circular debt over the next six years. The approved scheme includes refinancing Rs683 billion owed by the Power Holding Company and clearing long-standing dues of Independent Power Producers (IPPs). The Prime Minister termed the decision a "historic step toward economic stability and investor confidence in Pakistan's energy sector." "This reflects our commitment to sustainable institutional reforms and reducing fiscal pressure, paving the way for a more stable and prosperous energy future," he said during the session. The cabinet also extended appreciation to Finance Minister Muhammad Aurangzeb and his economic team for presenting a public-friendly budget for the upcoming fiscal year, acknowledging their efforts in stabilizing the national economy. On the diplomatic front, Prime Minister Shehbaz Sharif lauded Chief of Army Staff Field Marshal Syed Asim Munir for his address to the Pakistani diaspora during his recent US visit. The prime minister commended the Field Marshal's firm commitment to defending Pakistan's borders and interests, calling it a powerful representation of national resolve. In recognition of exemplary Hajj arrangements this year, the prime minister paid tribute to Minister for Religious Affairs Sardar Yousaf, citing the well-managed pilgrimage as a reflection of the government's commitment to public service excellence. In other key decisions, the cabinet approved the appointment of Kamal Uddin Tipu as Chairperson of the Commission for the Protection of Journalists and Media Professionals on the recommendation of the Ministry of Human Rights. The cabinet also granted exemption under Section 21 of the Public Procurement Regulatory Authority Ordinance, 2002, to the National Power Parks Management Company Limited (NPPMCL) for procurement related to the acquisition of Rousch Power Plant. Additionally, the cabinet ratified the decisions taken during the Cabinet Committee on Legislative Cases meeting held on May 21, 2025.
1737100823-0%2Fsidra--(7)1737100823-0.png&w=3840&q=100)
Express Tribune
40 minutes ago
- Express Tribune
Pakistan signs '$1b' loan facility
The Ministry of Finance signed a five-year long-term financing facility for $1 billion, the government said in a statement on Wednesday. The financing is led by Dubai Islamic Bank and Standard Chartered, and the Islamic tranche forms 89% of the loan facility, according to the statement. "The Ministry of Finance has signed a syndicated term finance facility of $1,000 million partially guaranteed by a Policy-Based Guarantee of the ADB Programme 'Improved Resource Mobilisation & Utilisation Reform'," according to a press release. "The facility is a landmark transaction for the Government of Pakistan that demonstrates strong support from leading financiers in the region. This is a five-year multi-tranche facility including both Islamic and conventional tranches," it said. The finance ministry said that the Islamic facility was structured to be fully compliant with AAOIFI standards, and accounts for 89 per cent of the total financing amount, and the remaining 11pc was from conventional financing. It added, "The transaction was also the first facility supported by ADB's Policy-Based Guarantee linked to policy reform measures undertaken by an ADB Member Country, i.e Pakistan." "The ADB programme is designed to support Pakistan to build long-term fiscal resilience and stability and has supported Pakistan's re-entry into international commercial markets, with significant interest from Middle Eastern Banks," the press release read. Meanwhile, the ministry announced that it successfully raised over Rs1.2 trillion through a major auction of government bonds held on Wednesday. This includes the launch of a new 15-year Zero Coupon Bond, the first of its kind in Pakistan, which received strong demand from investors and raised over Rs47 billion. This new bond does not pay interest every year. Instead, investors receive a lump sum at the end of 15 years. This helps the government reduce short-term repayments and plan finances better. The strong response shows that investors are confident in Pakistan's economy and reforms. This move is part of the government's broader strategy to reduce borrowing risks, extend the repayment period of debt, and promote Islamic and long-term financial products. Yields on other government bonds also dropped, indicating optimism in financial markets about falling inflation and lower interest rates in the future. Pakistan's debt is now becoming more stable. The average repayment period of domestic debt has increased from 2.7 years last year to 3.75 years now, reducing the pressure to repay loans quickly. Moreover, more pension funds and insurance companiesrather than just banksare now investing in government bonds. This helps spread financial risk and deepen the local investor base. Finance Minister Senator Muhammad Aurangzeb said: "This is a major step forward in making Pakistan's financial system stronger and more resilient. We are introducing new, smart ways of borrowing that reduce risk and give investors more options. Our aim is to manage public debt responsibly, promote Islamic finance, and attract more long-term investment to support the country's economic growth." The Ministry of Finance is also working on more products to allow ordinary citizens to invest in government bonds, especially Islamic ones, to encourage savings and financial inclusion. Despite global uncertainties, today's auction shows that Pakistan's economy is gaining investor trust and moving in the right direction. With additional input from Irshad Ansari
Business Recorder
2 hours ago
- Business Recorder
A split forms in MAGA world as Trump weighs next steps on Iran, with some top stars rebuking him
KARACHI: A schism has opened among President Donald Trump's most devout MAGA supporters and national security conservatives over the Israel-Iran conflict, as some long-time defenders of the president's America First mantra call him out for weighing a greater US role in the region. Georgia Rep. Marjorie Taylor Greene, commentator Tucker Carlson and conservative firebrand Charlie Kirk — with legions of their own devoted followers — are reminding audiences of Trump's 2024 promises to resist overseas military involvement after a week of deadly strikes and counter strikes between Israel and Iran, and discussion of US involvement. On social media and their popular airwaves, questions about Trump's stance from these central validating voices are exposing a crack in his forward guard. They are also warning that the schism could deter progress on other priorities. Trump says deal 'will be signed' eventually with Iran 'No issue currently divides the right as much as foreign policy,' Kirk wrote on X, adding he was 'very concerned' that a massive split among MAGA could 'disrupt our momentum and our insanely successful Presidency.' The State Department and US military last week directed a voluntary evacuation of nonessential personnel and their loved ones from some U.S. diplomatic outposts in the Middle East. Trump on Monday abruptly departed this week's G7 Summit in Canada due to the intensifying conflict, returning to Washington for urgent talks with his national security team. He also posted an ominous social media warning that 'Everyone should immediately evacuate Tehran!' Copyright Business Recorder, 2025
