Pakistan Admits Limited Oil Reserves Amid Global Price Surge
Islamabad says it holds only 5–7 days of crude stock, highlighting a sharp contrast with India’s stronger energy buffer during global supply disruptions.
Pakistan has acknowledged its vulnerability to rising global oil prices, admitting it lacks strategic petroleum reserves similar to those maintained by India. The statement came from petroleum minister Ali Pervaiz Malik during a television interview, as crude prices climbed to $126 per barrel due to tensions around the Strait of Hormuz.
Malik revealed that Pakistan relies solely on commercial reserves, which can sustain the country for only five to seven days. In contrast, India reportedly maintains around 60–70 days of combined strategic and commercial reserves, giving it a stronger cushion against global supply shocks.
He also pointed to India’s economic capacity, noting that its financial strength allows greater flexibility in managing fuel prices, including tax adjustments during crises. Indian fuel prices have remained relatively stable despite global volatility, supported by reserve stocks and policy measures.
Meanwhile, Pakistan is facing mounting pressure domestically. A sharp increase in fuel prices—rising by over 40% at one point—triggered protests and supply shortages. Although Prime Minister Shehbaz Sharif later reduced petrol prices, public dissatisfaction continues due to ongoing economic strain.
The situation is further complicated by Pakistan’s commitments to the International Monetary Fund (IMF), which limit the government’s ability to provide subsidies. Malik noted that backchannel negotiations were required to ease fuel levies without violating IMF conditions.
As global energy uncertainty persists, Pakistan’s limited reserves and constrained policy options continue to pose significant challenges for its economy.
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