KARACHI, Mar 04 (APP):The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Wednesday said as the Strait of Hormuz handles nearly 20 per cent of the world’s oil shipments, any continued disruption could jolt the global markets and trigger an economic crisis for countries heavily reliant on imported fuel.
Senior Vice President FPCCI and Chairman Businessmen Panel-Progressive (BMPP), Saquib Fayyaz Magoon, in a statement issued here, raised alarm over Hormuz crisis and potential economic shockwave, saying that the prevailing regional situation had rendered risks to global energy supply chains and its fallout would be felt directly by energy-importing countries.
Pakistan meets a substantial portion of its energy requirements through imports from Saudi Arabia, the United Arab Emirates and Qatar and disruptions in crude oil or liquefied natural gas (LNG) supplies could drive up fuel and electricity prices, Magoon argued, adding that tanker movements had already been affected, pushing daily LNG freight rates up by more than 40 per cent.
Calling for swift action, the FPCCI leader urged the government to make emergency arrangements for alternative energy supply routes, build up strategic petroleum reserves and intensify diplomatic efforts to help de-escalate tensions in the region.
Stressing on a timely policy intervention to shield industry and consumers from the cascading impact of rising import costs and strain on energy supply chain, Magoon said that coordinated action between policymakers, regulators and the business community was essential to navigate the unfolding crisis.