Pakistan has taken a major step toward strengthening its energy security by establishing a high-level committee to design and operationalize strategic petroleum reserves, as the government seeks to protect the economy from global oil price volatility and supply disruptions.
The decision reflects growing concern over Pakistan’s exposure to international energy shocks, particularly during periods of geopolitical instability and sharp fluctuations in crude oil prices.
High-level committee formed
According to an official notification issued by the Ministry of Energy, the newly formed Committee on Strategic Petroleum Reserves has been tasked with submitting detailed recommendations and an implementation roadmap by May 8, 2026.
The committee was constituted following a meeting chaired by the federal petroleum minister and is designed to bring together policy, security, regulatory, and commercial expertise under a single framework.
Broad institutional representation
The committee will be headed by the Special Secretary of the Petroleum Division and includes representatives from key institutions such as the National Crisis Management Cell, Oil and Gas Regulatory Authority, Joint Staff Headquarters, and the Directorate General Logistics.
Major state-owned and commercial energy entities, including Pakistan State Oil, Inter-State Gas Systems, and the Pakistan Institute of Development Economics, are also part of the process.
Private-sector stakeholders, such as HUBCO, along with refineries and oil storage operators, may be included as consultations progress.
What the committee will do
Under its mandate, the committee will develop a national framework for emergency oil storage and fuel management, focusing on:
- Operationalizing strategic petroleum reserves
- Mapping all existing oil storage facilities nationwide
- Improving utilization of current storage infrastructure
- Assessing financing models and investment needs
- Planning long-term expansion to meet future energy security requirements
Officials said the effort would build on earlier technical assessments, including studies conducted by Matt MacDonald and PIDE, which highlighted gaps in Pakistan’s fuel storage capacity and the absence of a structured emergency reserve system.
Why strategic reserves matter
Energy experts note that countries with strategic petroleum reserves are better positioned to absorb external shocks, stabilize domestic fuel markets, and ensure continuity of supply during emergencies.
For Pakistan, developing a reliable reserve system is seen as a critical step toward reducing economic vulnerability, improving crisis preparedness, and strengthening long-term energy planning.
The committee’s recommendations are expected to shape future policy decisions on fuel security and infrastructure investment.
