- The document discusses the impact of petroleum prices on Pakistan's economy. It acknowledges contributions from Allah and the teacher, Prof. Farooq Qaisar. - Petroleum plays a vital role for many Pakistani industries. The group's project studies how fluctuations in petroleum and crude oil prices affect Pakistan's economy and GDP. - Through literature reviews, surveys, and analysis, the group found that changes in international oil prices did not significantly impact Pakistan's economy, unlike expectations. - The document provides members' names, an importance statement on petroleum, and definitions of key terms like GDP. It also lists historical oil prices in Pakistan and conclusions on impacts of lower oil prices.

2. Acknowledgement
• First of all we are thankful to Almighty Allah who in
spite of all our weaknesses enabled us for this type
of project. We are also indebted to our teacher “Prof.
Farooq Qaisar” for his kind of guidance and
supervision.

3. Dedications
• We dedicate our first Business plan Project to Allah
Almighty who has made it possible for us to work & then
to our respected teacher “Prof. Farooq Qaisar” who
provided us with all the guidelines to prove ourselves. We
are grateful to them for giving us this opportunity to
explore the most critical topic of Pakistan’s economy that
is PETROLIUM. The impact of petroleum on Pakistan’s
economy. We are indebted to them for giving us following
opportunity which will help us in a long run. Insha Allah

4. Summary:
• We are studying about the Petroleum products &
there affects on Pakistani economy. For this purpose
we study the past projects researches and articles.
After that we also conduct a survey on this topic
results are totally different from our expectations.
We conclude that there is not a big change in this
economy from the fluctuation of petroleum and
crude oil prices. Further more details are also in this
are also in this article.

5. Group Members
 Asma Tahir 2069
 Iqra Rasheed 0068
 Zobia Raffeque 2070

6. Impact of oil prices on Pakistan’s
economy
IMPORTANCE
Petroleum plays a vital role to many industries, and is of importance to
the maintenance of industrial civilization in its current configuration, and
thus is a critical concern for many nations. Oil accounts for a large
percentage of the world’s energy consumption, ranging from a low of
32% for Europe and Asia, to a high of 53% for the Middle East.
In Pakistan most of industries are dependent on petroleum and its
product.
like wapda, medium and large scale industries & Transprotation

7. Literature review
Impact of oil International prices on Pakistan economy
Findings
The data is collected from real international statistics, Pakistan economic survey
and Energy year book. Real GDP is measured in millions.
• The real crude oil prices are taken in dollar per barrel.
Conclusion:
The topic to explore the relationship of sharp rises in the prices of oil with GP
growth of Pakistan the period for the period of 20 years 1990 to 2009. A
macroeconomic model is analyzing the purpose. Several prices can be a sharp rises
in the prices of crude oil CO affect the output negatively, no matter the price of
CO is less then or more then the critical review.

8. IMPACT OF OIL PRICES ON STOCK
EXCHANGE AND CPI IN PAKISTAN
Findings
The oil is one of the most important factors affecting the
economy of the world so that the demand of oil increase day by
day and its prices increase double as the demand.
Conclusion
Most of the countries focus the energy sector so that the oil one
of the major sources for the energy sector so that the increase in
oil prices and the demand of oil both increase very rapidly and the
research result confirm that the increase in prices of oil effect the
energy sector and it effect the stock market and oil prices have the
positive and significant impact on the stock market.

9. Our Model
Independent
Foreign Crude oil prices
Our Currency rate
Dependent
Price
Imports
Moderating
Foreign debt burden
Government’s policies

10. Q 1: By decreasing oil prices what effect on your
consumption?

11. Q 2: What will be the future of
textile industry in Pakistan?

12. Q3: Are the rents of public
transport company decreased?

13. Q 4: Are the electricity prices also
decreased on same ratio to oil?

14. Q 5: What do you think about the future of cottage
industry on current crude oil price?

15. Q 6: There is less use of foreign reserves on imports of oil &
petroleum . is this healthy sign for Pak economy?

16. Q 7: are the” common man” avail
benefits from lower oil prices?

17. Gross Domestic Production
GDP (gross domestic product) is most important and one of the
primary indicators utilized to measure the condition of any
country's economy. The monetary worth of all the services and
finished goods produced surrounded by a country's borders in a
precise time period is called GDP. It is normally measured in
annually basis.
GDP growth reaching 8.4 percent in 2004-05
The energy consumption It has grown at an annual average
rate of 4.4 percent from 1990-91 to 2005-06

19. Imports and its cost
The oil being the second
major resource of power
utilized along by means of
approximately a stable
velocity of its production.
Pakistan is seriously reliant
on the oil imports from the
Middle East exporters (Saudi
Arab have a significant role).
Approximately 82 percent of
the oil and petroleum
products demand in the
country is meet through
imports.
Pakistan expenditure almost
44 percent of its export
income on oil imports in the
year 2006 to 2007. This
proportion was barely 27
percent in the year 2004 to
2005.

20. Petroleum & Inflation

23. Crude Oil
Some Facts
• A fall in the oil price will reduce the import bills of Pakistan,
thereby improving the balance of payments, foreign reserves
and, of course, the value of the rupee.
• Pakistan's first oil field was in the late 1952
in Baluchistan near a giant Sui gas field. The Toot oil
field was not discovered in the early 1960s in the Punjab. It
covers 122.67 square kilometers (47.36 sq mi). Pakistan
Petroleum and Pakistan Oilfields explored and began drilling
these fields with Soviet help in 1961 and activity began in
Toot during 1964. Pakistan has more than 326 million barrels
of oil the Senate was told on Wednesday 29 January 2009.

24. Respondents
 Gulistan Textile Mills ( Managers)
 Sapphire Textile Mills ( Managers)
 Petrol Stations
 Common Man

25. Oil Prices in Pakistan

26. Date HOBC Premium HS Diesel LS Diesel Kerosene
Jan 31, 2015 Rs.80.18/Ltr Rs.70.29/Ltr Rs.80.61/Ltr Rs.57.94/Ltr Rs.61.44/Ltr
Jan 01, 2015 Rs.92/Ltr Rs.78.28/Ltr Rs.86.23/Ltr Rs.67.5/Ltr Rs.71.92/Ltr
Dec 01, 2014 Rs.106.27/Ltr Rs.84.53/Ltr Rs.94.09/Ltr Rs.77.98/Ltr Rs.83.18/Ltr
Nov 01, 2014 Rs.116.45/Ltr Rs.94.19/Ltr Rs.101.21/Ltr Rs.83.42/Ltr Rs.87.52/Ltr
Oct 01, 2014 Rs.131.13/Ltr Rs.103.62/Ltr Rs.107.39/Ltr Rs.91.46/Ltr Rs.95.6/Ltr
Sep 01, 2014 Rs.129.64/Ltr Rs.106.56/Ltr Rs.108.34/Ltr Rs.92.08/Ltr Rs.97.05/Ltr
May 01, 2014 Rs.131.26/Ltr Rs.107.97/Ltr Rs.109.34/Ltr Rs.94.13/Ltr Rs.98.07/Ltr
Apr 01, 2014 Rs.136.57/Ltr Rs.108.31/Ltr Rs.113.85/Ltr Rs.95.06/Ltr Rs.101.15/Ltr
Petroleum Prices
Archive

27. Main Finding
A fall in the oil price will reduce the import bills of
Pakistan, thereby improving the balance of
payments, foreign reserves and, of course, the value
of the rupee

28. Conclusion
When the cost of oil goes up, production costs are increased and profits
reduced for industries that depend on oil. Producer costs — not consumer gasoline
costs — is the reason high oil prices threaten to shrink industrial production of
goods directly affected and also of energy-intensive products such as aluminum
and paper. This threat affects all new and old industrial economies, whether those
nations import or export oil.
The fall in oil prices is good for the world’s economic recovery. Since most of
the countries import oil, which makes their balance of payments unfavorable, a fall
in the price of oil meant an improvement in the balance of payments and a rise in
the currency rate. In the case of the US’s economy, a fall in oil prices implies
higher incomes for US consumers. An increase in the consumers’ income, in turn,
means increase in demand. This is true in the case of Europe as well, which has
been experiencing economic recession since 2008. An increase in the aggregate
demand means the pumping of the economy’s heart

29. Recommendations
• Of these many uses of oil in industry and commercial transportation, gasoline
demand.
• Among ordinary consumers may be the least sensitive to price. That is why the
• Relatively invariable demand of motorists cannot possibly account for the wide
cyclical variations we observe in crude prices. It’s the other 60 percent of the
barrel that matters most, at the margin. Just as oil market pundits typically
ignore the 60 percent of petroleum not going into passenger cars, they likewise
ignores the 60 percent of incremental oil demand not coming from China and
the United States.
• GDP (gross domestic product) is most important and one of the primary
indicators utilized to measure the condition of any country's economy. The
monetary worth of all the services and finished goods produced surrounded by
a country's borders in a precise time period is called GDP. It is normally
measured in annually basis.