Karachi, April 13, 2025 – In a significant proposal aimed at stabilizing Pakistan’s economy, the business community has called on the government to freeze petroleum prices for a full year.
Malik Khuda Bakhsh, President of the Pakistan Business Forum (Karachi Region) and Convener of the Energy Standing Committee of the FPCCI, urged that petroleum prices be fixed in the upcoming federal budget and maintained at that level for the entire fiscal year.
He argued that a consistent petroleum prices structure would reduce inflationary pressure without adding strain on the national treasury. The stability in fuel rates, he said, would allow the government to redirect its fiscal savings toward lowering electricity tariffs and interest rates — two key contributors to inflation and the cost of doing business.
Drawing comparisons to the COVID-19 era, Malik reminded that global petroleum prices had once dipped below the cost of mineral water, creating a unique window for economic strategy. However, only nations with robust fuel pricing and supply-demand frameworks managed to navigate that crisis effectively. He also pointed to historical impacts of U.S. tariff policies — particularly under former President Donald Trump — which disrupted global markets, including petroleum, gold, and equities.
Citing Prime Minister Shehbaz Sharif’s earlier decision to keep petroleum prices stable while offering relief through electricity bills, Malik noted how such a strategy had proven beneficial for the public and energy sector alike. According to him, revising petroleum prices every 15 days causes unnecessary market volatility. Fixing prices annually, he argued, would bring predictability and allow oil marketing companies and fuel station owners to plan their operations more efficiently.
He further advised the government to take advantage of currently low global oil rates to purchase additional stock for strategic reserves. This, he said, would secure Pakistan’s energy needs while also safeguarding public and private capital from unnecessary losses due to frequent price shifts.
Malik Khuda Bakhsh concluded that introducing an annual petroleum prices mechanism in the next federal budget would create long-term economic stability and provide much-needed confidence to investors and the business community.