Pakistan to decide on petrol price cut next week, finance official says

Pakistan will decide next week whether to reduce petrol prices following a recent cut in diesel rates, a senior finance official said Saturday, citing trends in global oil markets.

Bilal Azhar Kayani, minister of state for finance, said the government would make a decision on Friday after reviewing international price movements.

“The adjustment will reflect global market conditions,” he said while addressing the Karachi Chamber of Commerce and Industry.

Economic outlook and reforms

Kayani said Pakistan has regained eligibility to re-enter the global Eurobond market after a four-year gap, signaling improved investor confidence.

He also pointed to amendments made last year to Section 37A in the federal budget, which reduced certain discretionary powers, and said consultations are underway with businesses ahead of the upcoming budget.

“Karachi is the backbone of Pakistan’s economic activity,” he said, adding that he plans to meet stakeholders, including the Overseas Investors Chamber of Commerce and Industry and small traders, during his visit.

Kayani described the period since early 2024 as one of economic stabilization, citing lower inflation, rising foreign exchange reserves, and engagement with the International Monetary Fund.

He acknowledged Pakistan’s history of economic volatility, where periods of high growth often coincided with declining reserves, and stressed the need for more sustainable, private sector-led expansion.

Focus on investment and exports

The minister praised the Roshan Digital Account initiative, saying it has helped overseas Pakistanis invest securely in sectors such as stocks and real estate.

He said reforms under Prime Minister Shehbaz Sharif aim to boost foreign exchange inflows and support exporters, including changes to the Export Development Fund that give exporters greater control.

Kayani added that the government has been holding weekly consultations with business leaders to address challenges and improve policy coordination.

Ceasefire impact

He said economic stability was maintained despite a period of regional conflict and that a ceasefire has had positive effects beyond Pakistan.

“The improved security situation should now be leveraged to strengthen economic recovery,” Kayani said.