Zubair Tufail, President of the United Business Group and former head of the FPCCI, stated that the ongoing conflict between the US and Iran is adversely impacting the economies of Asian and Gulf countries. He noted that global energy markets and supply chains are experiencing significant uncertainty, affecting Pakistan’s exports.

The closure of the Strait of Hormuz has disrupted oil and gas supplies, with a potential reduction of up to 10 million barrels per day in Middle Eastern production. Tufail highlighted that recovery of energy markets hinges on Iran’s decisions, as reported by a British news agency. Saudi Aramco has indicated uncertainty regarding oil export ports. Disruptions in the Gulf have affected nearly 20% of global oil and liquefied gas shipments, exacerbating economic conditions.

Tufail emphasised the urgent need for Pakistan to fully utilise its Thar coal resources, thereby reducing reliance on imports. Currently, over 40% of Pakistan’s energy needs are met by imports, making the economy vulnerable to price fluctuations. He explained that a $10 increase in oil prices raises Pakistan’s current account deficit by $1.5 to $2 billion and inflation by 0.5 to 0.6 percentage points. While he praised Prime Minister Shehbaz Sharif’s austerity measures, he criticised the salary increases for assembly members amid cuts to government employees. He urged the immediate cessation of petrol supply for ministerial vehicles to ensure effective austerity measures.