Volume 14 Issue 2 2018


Qamar Ul Arafeen
ILMA University, Karachi, Pakistan.

S.M Ahsan Rizvi
Associate Professor, Management Science Department, Bahira University, Karachi, Pakistan.

Muhammad Imran Hanif
Institute of banking & finance, Bahauddin Zakria University, Multan, Pakistan.

Syed Nayyar Al
General Studies Department, Yanbu Industrial College, Madinat, Saudi Arabia.

Abstract Pakistan's economy is growing steadily. This growth demands higher energy consumption and consequently putting high pressure on the countries economy. Pakistan mainly depends upon oil and gas resources to fulfill energy requirements. Indigenous resources of Oil are not enough to quench the energy thirst of the growing economy. As a result, Pakistan has to import a large quantity of oil and oil-based products from Middle East countries. Gas reserves in the country are enough for current gas requirements. So natural gas is playing a key role in the power sector. Currently, in the oil upstream and the downstream sector, there are some local and international companies involved and the government of Pakistan is establishing such policies that it can attract more international investors in this sector but the rapid pace of change, a high degree of uncertainty and unstable political situation of the country present significant challenges and risk to foreign investment. The paper is a review of possible consequences and challenges presented by high oil prices in Pakistan. Pakistan is heavily dependent on imported fuels and this dependence is expected to increase even further in the future given the depleting gas resources. The rising oil prices in the international market has had affected negatively the balance of payment position as well as the budgetary position of the country and contributed to creating inflationary pressures in the economy. For long-run development, oil will remain an important source of energy. The government should chalk out strategies for ensuring use efficiency; and development, adequacy, and reliability of supply and the pricing of petroleum products in such a way that will not create an extra burden on the consumers. Unless appropriate steps are taken this trend of rising oil prices will further aggravate the negative impacts on the economy.
Keywords Import Parity Price (IPP), Light Diesel Oil (LDO), Motor Spirit (MS), High Speed Diesel (HSD), Oil Marketing Companies (OMCs), Import Parity Price (IPP), Oil Companies Advisory Committee (OCAC), Oil and Gas Regulatory Authority (OGRA)
Year 2018
Volume 14
Issue 2
Type Short Report
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification O5,R32, R48
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2416-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Type of Review Double Blind Peer Reviewed
Format PDF
Paper Link
Page 209-220
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