Pakistan’s Ministry of Finance has notified a new head of account to establish a Petroleum Prices Stabilisation Fund, aiming to cushion the domestic economy against volatile global crude markets.
The fund will credit all proceeds to the Public Account of the Federation under the major head Special Deposit Fund, according to official notifications published Monday.
The move follows a June 5 decision by the government to formalise the mechanism, which is designed to mitigate the impact of sudden spikes in international oil prices on local fuel costs.
By ring-fencing revenues, authorities seek to prevent abrupt retail price hikes that have historically strained household budgets and corporate margins in the region.
This development arrives as global energy markets navigate a complex backdrop.
Recent diplomatic progress between the United States and Iran has triggered a rapid repricing in crude, with traders adjusting positions following reports of a mutual understanding agreement aimed at de-escalating tensions.