ISLAMABAD: Pakistan is racing against time to secure critical oil supplies from Saudi Arabia as fears of a national fuel crisis grow amid escalating Middle East tensions and the closure of the Strait of Hormuz. Authorities have formally requested Riyadh to expand the existing deferred oil facility from $1.2 billion to $5 billion, with repayment extended from one year to three years, to shield the country from potential energy shortages.
Officials warned that any disruption in oil imports could severely affect domestic petroleum availability, pushing fuel prices higher and straining Pakistan’s already fragile energy infrastructure. The request for increased Saudi support reflects Islamabad’s urgent need to safeguard energy security and maintain uninterrupted supply for power generation, industry, and transportation.
The government is also exploring measures to strengthen financial arrangements for energy imports, including securitization of Pakistani diaspora remittances and guarantees for future international Sukuk issuances linked to fuel procurement. Officials said these steps would help maintain foreign reserves and ensure timely payment for critical oil cargoes.
Three major oil shipments are expected to arrive in Pakistan this month, but authorities warned that global crude prices could surge to $120 per barrel if tensions intensify further. Such a spike would push Pakistan’s monthly oil import bill up by nearly $600 million, amplifying pressure on the national economy and domestic fuel supply chains.
The federal government is coordinating with provincial authorities to monitor petrol and diesel stocks, prevent hoarding, and ensure smooth distribution. Officials emphasized that securing the Saudi oil facility is essential to avert shortages, sustain power and industrial output, and protect households from rising fuel costs.
Experts said Pakistan’s energy security depends on swift approvals and implementation of long-term supply agreements with Saudi Arabia. Delays could trigger rationing, increased import costs, and widespread public concern, making the expanded oil facility a vital lifeline for the country’s energy stability.
