Energy Supply and Crude Oil Situation in the Country Remains Satisfactory, Though Further Measures Are Required to Meet Gas and LNG Demands, States Finance Minister Muhammad Aurangzeb
LAHORE : The overall supply situation of crude oil and other energy sources in the country is satisfactory at present, said Federal Minister for Finance and Revenue Muhammad Aurangzeb while mentioning that further measures need to be taken to adequately address the country’s energy demand for gas and Liquefied Natural Gas (LNG).
In his keynote address at an academic gathering at a private university in Lahore, the Finance Minister pointed out that Pakistan has managed to avoid serious energy crisis, with no fuel lines formed in long queues, and no deterioration in law & order conditions as a result of energy shortages.
It is worth noting the following points of the finance minister Muhammad Aurangzeb’s address in Lahore.The following points are worthy of note in the context of Muhammad Aurangzeb’s address in Lahore.
Strong IT Export Growth: Aurangzeb noted that the IT service exports have grown from $1 billion to $4.6 billion in Pakistan, and IT exports are expected to cross $5.5 billion mark in current fiscal year.
Historic Foreign Exchange Reserves and Credit Ratings: Foreign exchange reserves are at historic levels, with more than 3 months’ worth of imports covered, compared with previous crises when reserves fell to just two weeks’ import cover. He also said that Pakistan’s credit rating has been improved three times since April last year with the successful private placements, Panda bond efforts, and $3 billion Eurobonds release in September which attracted twice the investor base from Asia, Middle-East, Europe, and the U.S.
Energy Management & Targeted Subsidies: On the energy outlook, Aurangzeb said that even in the face of regional conflicts, energy supplies were secure till November and winter preparations were in full swing. He also pointed out that the government would no longer be following the model of giving general subsidies, but would take the step of giving financial support to specific groups, such as motorcycles, three-wheelers and vehicles under 800cc, which would benefit 12 million unique people, and approximately 40 to 50 million citizens across the country.
Structural Reforms Underway: The Finance Minister said that economic stabilization is accompanied by concrete structural reforms which have moved from the planning table to the ground.