Pakistan is preparing contingency plans to secure oil imports via pipelines from Saudi Arabia and the United Arab Emirates (UAE) in case the Strait of Hormuz is closed due to escalating tensions between Israel and Iran, officials said Thursday.
The Strait of Hormuz, a critical waterway through which about 20% of the world’s crude oil passes, could be blocked if the conflict escalates into a broader war. Pakistani officials are exploring alternative routes to ensure steady oil supplies and avoid disruptions to the country’s energy needs.
“Pakistan could use Saudi Arabia’s East-West Crude Oil Pipeline and the UAE’s Abu Dhabi Crude Oil Pipeline to bypass the Strait of Hormuz,” a government official said, referring to the pipelines that transport oil to safer ports away from the waterway.
Officials assured there is no immediate threat of higher oil prices for Pakistan, as negotiations with global suppliers are ongoing to stabilize prices and ensure smooth deliveries. Additionally, Pakistan is exploring new oil storage options, including repurposing abandoned power plants, which could store up to one million barrels of furnace oil.
Prime Minister Shehbaz Sharif has formed a high-level committee, led by Finance Minister Aurangzeb, to monitor the Israel-Iran conflict and its potential impact on global oil markets. “The government is committed to ensuring energy security and will take all necessary steps to protect the country’s interests,” a spokesperson said.