PM Shehbaz vows to turn falling oil prices into economic opportunity

• Oil slid around 3% to its weakest since 2021 on Trump tariffs.
• Premier notes recent drop in oil prices a valuable opportunity.
• Says structural reforms remained central to government’s strategy. 
  

Prime Minister Shehbaz Sharif said on Monday that the government was actively looking to capitalise on falling global oil prices to ease economic pressures and boost national growth.

“The recent drop in global oil prices offers a valuable opportunity, and we are working to harness its long-term benefits for Pakistan’s economy,” the PM said while chairing a meeting to review progress on the government’s wide-ranging reforms in the maritime sector.

Oil slid around 3% on Monday to its weakest since 2021, while most commodity markets, including metals and coffee, declined as the intensifying trade war between the US and China triggered worries over demand for raw materials, Reuters reported.

According to analysts, commodities are on the receiving end of these tariff-related concerns about growth and demand. 

Last week, the premier said in a statement that Pakistan would also use the money saved from lower global oil prices to support the power sector.

Addressing the meeting, he noted that the reduction in electricity tariff of almost Rs7.5 per unit was a direct result of the focused work of a dedicated task force on reforms in the energy sector.

“This electricity tariff reduction is a major relief not only for households but also for all sectors like agriculture, commerce, trade, and industry. It will bring down the cost of production, improve local manufacturing, generate employment, and enhance exports,” he stated.

He said that structural reforms remained central to the government’s economic strategy, which had already stabilised Pakistan’s macroeconomic indicators.

During the meeting, he said that the same results-driven model was now being applied to the maritime sector, adding that the reforms in maritime and energy sectors would boost trade, reduce costs, and unlock Pakistan’s economic potential.

ji,He hailed the task force on maritime reforms for its diligent work and praised its efforts in preparing a comprehensive set of recommendations aimed at ending decades-long stagnation in the sector.

“Pakistan has been blessed with a long coastline and vast maritime resources. With the right reforms, we can unlock immense economic potential and bring our ports to global competitive standards,” the PM said.

The meeting reviewed a detailed presentation on the roadmap for maritime sector reforms.

Participants were briefed on the introduction of the Pakistan Maritime Port Act, unifying regulations across all ports, and the creation of a national dredging plan, including the formation of a National Dredging Company to serve ports across the country.

The forum also discussed the modernisation of the Pakistan National Shipping Corporation (PNSC) through a 25-year rehabilitation plan and the inclusion of the private sector via public-private partnerships.

The meeting was informed that a hazardous waste disposal plant had been set up in Gadani to manage chemical and industrial waste.

The prime minister instructed the authorities concerned to accelerate the installation of modern scanning systems at all ports and expedite customs clearance procedures, particularly in the red and yellow channels.

He also directed that a plan be developed to quickly auction long-held containers to free up port space and improve efficiency.

The task force also briefed the forum on conducting financial, HR, and performance audits at national ports; enhancing training and human resource development at Karachi Port Trust; and reviewing trade tariffs to boost the competitiveness of Pakistani ports.

The prime minister acknowledged the dedication of the maritime task force and other stakeholders involved in crafting the reform agenda.

He reaffirmed that maritime resources were key to global trade and Pakistan’s economic future, adding that timely action was essential to remain competitive in an evolving global market.

The meeting was attended by Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar, Chief of Army Staff General Syed Asim Munir, federal ministers Khawaja Muhammad Asif, Ahsan Iqbal, Azam Nazir Tarar, Ahad Khan Cheema, Junaid Anwar, Adviser to the PM Syed Tauqeer Shah, the Governor of the State Bank, and other senior officials from relevant ministries and institutions.