Global oil shock puts energy security at Heart of Pakistan’s economic strategy

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 21st May, 2026) Federal Parliamentary Secretary for Information and Broadcasting Barrister Danyal Chaudhry on Thursday warned that escalating tensions between the United States and Iran, instability around the Strait of Hormuz and disruptions in global supply chains have sharply driven up international crude oil prices, forcing Pakistan to take difficult but necessary decisions to safeguard national energy security, economic stability and uninterrupted fuel supply.

He made these remarks while addressing a special briefing organized by the Parliamentary Forum on Energy and Economy at the Pakistan Institute for Parliamentary Services.

Barrister Danyal Chaudhry stated that Pakistan, being heavily dependent on imported fuel, remains vulnerable to global market fluctuations and geopolitical crises.

He said the government adjusted petroleum product prices in response to extraordinary international pressures to protect the country’s energy needs and maintain fiscal balance.

He emphasized that energy policy can no longer be viewed solely through an economic lens, describing it instead as a matter directly linked to national security, public confidence and state stability.

Referring to the recent increase in petroleum prices, he noted that crude oil prices in the international market had surged significantly, leading to more than a 55 percent rise in domestic petroleum prices.

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Despite the difficult circumstances, he said, the government attempted to cushion the impact on citizens while maintaining economic discipline under the IMF programme, including adjustments in the Petroleum Development Levy (PDL).

The parliamentary secretary also criticized attempts to portray the price hike as purely a policy failure, asserting that the real drivers were international conflicts and global supply disruptions.

He said the government was pursuing a transparent communication strategy to counter misinformation and propaganda surrounding the issue.

Highlighting long term challenges, Barrister Danyal said the ongoing global energy crisis had exposed structural weaknesses in Pakistan’s energy sector, making it essential for the country to reduce reliance on costly imported fossil fuels and accelerate the transition toward affordable, locally sourced and sustainable energy alternatives.

Representatives of China Pakistan Caiyu Economic Development Private Limited and Shaanxi Xinghuo Industrial Group also attended the briefing.