Prime Minister Shehbaz Sharif on Monday constituted an 18-member high-level committee to examine the impact on the country’s economy of rising international oil prices following the U.S.-Israel joint attack on Iran.
In a notification, the Prime Minister’s Office said the committee would monitor an upward trend in international oil prices following the evolving regional situation. It would devise a mitigation strategy for Pakistan’s economy, the notification added.
Stock markets declined as oil prices soared over the weekend amid fears of a prolonged Middle East conflict, especially as Tehran targets U.S. military bases in Gulf states and has effectively shut the Strait of Hormuz, which accounts for roughly 20% of oil transport globally.
According to the notification, Finance Minister Muhammad Aurangzeb would serve as convener of the committee, which would include the ministers for petroleum and members. Additional members are the minister of state for finance; the State Bank of Pakistan governor; the 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.
The committee has been tasked with closely monitoring forward and futures prices of petroleum products and assessing the predictability of the supply chain in view of the ongoing regional conflict. It would also determine the foreign-exchange implications of oil price volatility for the short and medium term and suggest measures to ensure an uninterrupted fuel supply. Additionally, the committee would conduct a detailed analysis of the fiscal impact of a prolonged conflict and review the broader effects of the war on Pakistan’s economy.
The notification directs the committee to meet daily and submit a report to the prime minister. It has the mandate to co-opt any additional members if required.