Regional tensions threaten economy: PM for ensuring fuel supplies

ISLAMABAD: Prime Minister Shehbaz Sharif was informed on Thursday that Pakistan has sufficient petroleum reserves to withstand any immediate disruption arising from mounting regional tensions, with future fuel supplies also secured.

Chairing a high-level meeting to review the potential economic fallout from the continuing regional crisis, the prime minister directed authorities to remain fully prepared for any adverse developments and to finalise contingency plans to safeguard the economy against further deterioration in the regional security environment.

The meeting reviewed the implications of the uncertain regional situation for the country’s economy, including a report on austerity measures and broader cost-saving initiatives aimed at reducing pressure on public finances and conserving energy resources if the crisis deepens.

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“The regional situation remains uncertain. Maintain full preparedness to deal with any possible challenge,” the PM told officials, stressing the need for advance planning rather than reactive policymaking.

Seeking to reassure markets and the masses, the prime minister said the country’s economy remained stable despite growing geopolitical uncertainty.

“By the grace of Allah, the national economy is currently stable. A comprehensive plan should be prepared to enable timely action if needed,” he said.

He credited the government’s earlier fuel conservation strategy and public cooperation with helping Pakistan navigate recent volatility in international energy markets.

He said the measures ensured uninterrupted fuel supplies while government subsidies cushioned the impact of rising international petroleum prices on vulnerable groups, including motorcyclists, rickshaw drivers and transport operators.

Warning that prolonged regional instability could still affect the country’s economic outlook, he directed officials to prepare for potential disruptions to energy markets and supply chains.

“There is concern that escalating regional tensions could negatively affect the country’s economy in the future,” he said, adding that preparedness would be critical if the situation worsened.

He also ordered federal and provincial authorities to crack down on hoarding and artificial shortages of petroleum products.

“In coordination with provincial governments, strict action should be taken against those creating an artificial shortage of petroleum products,” he instructed.

He also called for greater fiscal discipline and resource conservation, urging the country to embrace a lasting culture of frugality.

“Just as the public fully supported the previous austerity campaign, a culture of prudence must now be adopted at the national level,” he said.

The meeting was attended by Minister for Planning Ahsan Iqbal, Minister for Finance Muhammad Aurangzeb, Minister for Petroleum Ali Pervaiz Malik, Minister for Power Awais Leghari, Minister of State for Finance Bilal Kayani, Special Assistant to the Prime Minister Tariq Bajwa, State Bank of Pakistan Governor Jameel Ahmad, and other senior government officials.

Copyright Business Recorder, 2026