SBP Governor Warns Oil Prices May Hit $100 Per Barrel
The governor state bank on Wednesday warned that oil prices could reach $100 barrel per day due to the recent war in the Gulf region.
The finance minister informed the Senate body that the country was maintaining oil stocks for 28 days, crude 10 days, LNG and LPG stocks were sufficient to meet demand for 15 days.He advised the masses to follow conservation measures. But he ruled out the possibility of rationing.
The Senate standing committee on finance approved the FBR Amendment Bill 2026 after debate on tax officers’ transfers and institutional authority, while the central bank governor briefed lawmakers on inflation, reserves, and economic outlook.
A Senate committee on Wednesday approved the FBR Amendment Bill 2026 after deliberations on proposed changes to the Federal Board of Revenue’s administrative authority.
Lawmakers discussed provisions related to the appointment and transfer powers of tax officials within the tax authority.Senator Saleem Mandviwalla said the authority to appoint members of the Federal Board of Revenue rests with the FBR chairman.
He noted that the arrangement has remained in place since 2007 under existing administrative rules.The chairman of the Federal Board of Revenue told the committee the tax authority operates under its own legal framework. He said the appointment and transfer structure had functioned under the same administrative system for years.
Senator Shahzeb Durrani described the matter as purely administrative in nature. He said the federal finance minister should not be included in decisions regarding internal transfers of tax officials.
The FBR chairman informed lawmakers that more than 78 officers in Grade 21 currently serve within the institution. He added that transfers of senior tax officials occur frequently as part of routine administrative management.The chairman said such administrative practices have historically remained part of the FBR’s internal governance system.
Following the discussion, the committee approved the proposed amendment to the FBR Amendment Bill 2026.During the meeting, Senator Zamir Ghumro said he is a member of the Tax Policy Board but its meeting has never been convened. Pakistan Muslim League-N lawmaker Bilal Azhar Kayani also said he previously served on the board but meetings were never held.
Senator Anusha Rehman supported granting the FBR chairman authority to transfer tax officers. She said the power to transfer tax officials should not remain with the federal finance minister.
The committee subsequently passed the Federal Board of Revenue Amendment Bill 2026 after incorporating the proposed changes.Separately, State Bank of Pakistan Governor Jameel Ahmad briefed the committee on the country’s economic outlook and macroeconomic indicators.The central bank governor said inflation during the current fiscal year is expected to remain between 5% and 7%.
He added that inflation may also remain within the same range during the next fiscal year.However, he warned that regional tensions could influence inflation trends in the coming months. Rising geopolitical risks and energy prices may affect Pakistan’s import bill and domestic inflation.
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The governor said Pakistan’s current account deficit could remain around 1% of gross domestic product during the current fiscal year. He added that the deficit is expected to remain within the projected limit despite rising petroleum prices.
Ahmad noted that global oil prices could reach $100 per barrel, which may increase external sector pressures. Energy imports account for a significant portion of Pakistan’s annual import expenditure.Pakistan’s foreign exchange reserves have reached about $16 billion, the governor said while briefing lawmakers.
He emphasized that the reserves were not accumulated through additional borrowing.The State Bank purchased approximately $24 billion from the market during the past three years, Ahmad said.
These purchases helped stabilize the currency and improve external buffers.Pakistan’s external debt has increased from $55 billion to about $103 billion over time, the governor said. However, he noted that no additional external borrowing has occurred during the past four years.
He said Pakistan’s total external liabilities currently stand at about $138 billion. The central bank expects foreign exchange reserves to reach $18 billion by June this year.Reserves could further increase to around $20 billion by December 2026, according to the governor. Ahmad also said the United Arab Emirates is currently rolling over deposits with Pakistan on a monthly basis.
Previously, the UAE rollover arrangement was conducted annually, he added. However, he clarified that all other terms of the UAE deposit agreement remain unchanged.The governor said Pakistan’s economic growth is projected to remain between 4.7% and 5.7% this fiscal year. Meanwhile, workers’ remittances are expected to reach approximately $42 billion during the same period.Pakistan’s economic recovery remains closely linked to external financing stability and export growth.
The Federal Board of Revenue’s tax reforms and revenue mobilization efforts will also play a crucial role in sustaining fiscal stability and improving Pakistan’s macroeconomic outlook.