How Pakistan is coping with the Challenge of High Oil Prices

Malik, Afia (2008): How Pakistan is coping with the Challenge of High Oil Prices.

Abstract

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 future given the depleting gas resources. The rising oil prices in the international market has had effected negatively balance of payment position as well as on the budgetary position of the country and contributed in 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 efficiency in use; and development, adequacy and reliability of supply. Unless appropriate steps are taken this trend of rising oil prices will further aggravate the negative impacts on the economy.

• Item Type: MPRA Paper
• Language: English
• Keywords: Oil; Prices; Deregulation; Pakistan; Macro-economy
• Subjects: L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L16 - Industrial Organization and Macroeconomics: Industrial Structure and Structural Change ; Industrial Price Indices; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q41 - Demand and Supply ; Prices; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy

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