ISLAMABAD: Pakistan is reportedly considering approaching the International Monetary Fund (IMF) for relief on the carbon levy imposed on furnace oil, as the government seeks to secure energy supplies amid escalating tensions in the Gulf region.
In an interview with Aaj News, Federal Minister for Petroleum Ali Pervaiz Malik said the Prime Minister has directed the finance ministry to engage the IMF on suspending the carbon levy introduced under the Resilience and Sustainability Facility (RSF). The move aims to allow the country to use furnace oil domestically rather than exporting it during the ongoing crisis.
“When the world is scrambling for fuel, and we are forced to export furnace oil because of the carbon levy, why not explore using it locally?” Malik said, stressing that the government remains committed to upholding the IMF programme and avoiding any fiscal adventurism.
The minister also indicated that the government may need to review non-essential imports, including automobiles, and adjust duties or exchange rate measures in consultation with the IMF to prevent external account pressures. Remittances from Gulf countries are being closely monitored.
Malik warned that rising crude prices—currently trading at $80–85 per barrel—could severely strain Pakistan’s external account. Prices hitting $100 per barrel may add $250 million per month, while $120 per barrel could increase the burden to $500 million monthly.
He added that the country currently holds 20–30 days of petrol and diesel stock, with alternative crude cargoes arranged from Saudi Arabia’s Red Sea port of Yanbu and UAE’s Fujairah port, bypassing the Strait of Hormuz. Two Pakistan National Shipping Corporation (PNSC) vessels remain stuck in the Strait.
The minister warned against hoarding and smuggling, stating, “Anyone attempting to benefit from this black swan event will face the full force of the law.”
He noted that petrol import premiums have surged from $5 per barrel last week to $17, potentially pushing domestic petrol prices up by Rs15–20 per litre if costs are passed through. Alternative imports from sources like Singapore would further increase premiums, ultimately impacting local fuel prices.
Malik urged the public to adopt energy conservation measures while assuring that the government is taking all steps to mitigate hardships amid the Gulf energy crisis.
