PM forms 18-member committee to assess oil price impact after Iran strikes

Prime Minister Shehbaz Sharif has constituted an 18-member high-level committee to evaluate the impact of rising international oil prices on Pakistan’s economy following the US-Israel attack on Iran. 

According to a notification issued by the Prime Minister’s Office on Monday, Minister for Finance and Revenue Muhammad Aurangzeb has been appointed convener of the committee. Its members include the ministers for petroleum and power, minister of state for finance, the governor of the State Bank of Pakistan, secretaries of petroleum, power and finance, the chairman of the Federal Board of Revenue, and senior officials from energy sector entities and intelligence agencies.

The committee will track forward and futures prices of petroleum products and evaluate supply chain predictability in light of the ongoing conflict. It will also examine the foreign exchange implications of oil price movements in the short and medium term.

In addition, the body has been directed to assess the fiscal consequences of a prolonged conflict and review the broader economic impact on Pakistan. It will propose measures to ensure uninterrupted petroleum supply and adequate market availability.

The notification states that the committee will meet daily and submit reports to the prime minister. It may also co-opt additional members if required. The Petroleum Division will provide secretarial support.

International oil prices rose sharply after the escalation in the Middle East. Brent crude briefly surged nearly 14% and West Texas Intermediate climbed almost 12% at the start of trading. Concerns over supply disruptions intensified as tensions heightened around the Strait of Hormuz, through which about 20% of global seaborne oil passes.