Pakistan cannot continue offering unconditional subsidies on expensive petrol, Federal Petroleum Minister Ali Pervaiz Malik said on Sunday.
The Petroleum Minister said the current global oil shock could create a financial burden worth thousands of billions of rupees.
Speaking to workers in his constituency, Malik said the country must carefully manage its resources.
He said Pakistan could not deal with the ongoing oil crisis through unconditional subsidies.
According to the minister, the government must arrange sufficient resources before increasing public spending.
He warned that spending without securing funds could create serious economic difficulties.
Malik referred to the economic situation in 2022 as an example.
Pakistan faced intense inflation and economic pressure during that period.
The Petroleum Minister said the government must avoid repeating such circumstances.
He also explained that petrol prices in Pakistan are connected to international oil prices.
He said domestic fuel prices are not increased or reduced at his personal discretion.
Any significant decline in international oil prices would eventually provide relief to consumers.
Malik said the government would adjust domestic prices according to developments in the global market.
The minister is also expected to visit Saudi Arabia next week.
During the visit, he will thank Saudi Arabia for its support regarding oil supplies.
He will also express Pakistan’s solidarity with Saudi Arabia during the current regional situation.
Malik said Pakistan could face several challenges over the coming months.
He said he had already briefed Prime Minister Shehbaz Sharif about the expected situation.
The briefing covered challenges anticipated during December, January and February.
The minister also presented measures that could be required before the winter season.
He said the government was preparing for possible pressure on the country’s energy supply.
Another major concern is the expected shortage of gas during the coming months.
The government plans to address this issue by arranging LPG supplies in advance.
The Petroleum Minister said timely arrangements would help reduce pressure during the winter.
The government is also monitoring developments in international energy markets.
Rising global oil prices have increased pressure on Pakistan’s economy and consumers.
Earlier, the government introduced targeted relief measures for vulnerable fuel consumers.
However, Malik’s latest remarks indicate that broad and unconditional subsidies may not be financially sustainable.
The government will therefore need to balance public relief with available financial resources.
International oil prices will remain an important factor in determining future petrol prices.
Any sustained decline in global prices could eventually reduce the pressure on domestic consumers.
For now, the government is focusing on managing the economic impact of higher energy costs.
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It is also preparing for possible fuel and gas supply challenges during the winter months.
