ISLAMABAD — The Ministry of Finance issued an official notification on Tuesday establishing a new legal mechanism to manage oil savings. According to the document, authorities will credit all proceeds received under the initiative to the Public Account of the Federation under the major head titled Special Deposit Fund.
The Ministry of Finance, the Ministry of Petroleum, and the Oil and Gas Regulatory Authority will jointly develop the fund’s operating procedures. Furthermore, these bodies will design a comprehensive governance framework, which will require separate approvals later.
This strategic initiative follows sharp increases in global oil prices. Specifically, the recent United States-Israel conflict with Iran triggered intense volatility across international energy markets. Although the Pakistani government previously secured discounted oil cargoes through diplomatic channels, those older arrangements occurred on an ad hoc basis. Therefore, the state lacked a formal legal mechanism to systematically manage the financial windfalls.
Officials confirmed that the fund currently holds no active deposits. However, the state intends the mechanism to capture future savings from discounted oil purchases, national austerity measures, and other available state resources. Consequently, the government will use these accumulated funds to smooth weekly petroleum price adjustments. This process will directly reduce price volatility for domestic consumers.
Additionally, the new mechanism could preserve substantial savings from imports sourced outside traditional Middle Eastern markets. The government aims to diversify its energy supply lines while protecting the national economy from external geopolitical shocks.
