New Delhi, April 29 (IANS). According to a new report, Pakistan’s efforts to somehow end the conflict between America and Iran are not just a political strategy, but also a major economic need.
The report said that if Pakistan is able to successfully intervene in this matter, then the risk of sudden increase in oil and gas prices can be reduced, pressure on the power sector will reduce, relations with Gulf countries will remain stable and new trade opportunities with Iran can open.
According to the report, Pakistan is a country that is dependent on imports for energy, especially its relations with the Gulf countries. Also, he is still working under the IMF’s bailout program.
Pakistan has launched this mediation effort at a time when it is dependent on the IMF program of seven billion dollars, and its central bank is aiming to reach foreign exchange reserves to about $18 billion by the end of June.
The report said that it is a big economy, which has a lot of potential, but it is also very sensitive to external shocks.
According to government data, the share of oil in the country’s total imports in the first quarter of the current financial year was 16.64 percent.
It was told in the report that this means that increase in oil price or interruption in supply directly affects inflation and the rupee. Volatility in regional energy markets poses a major challenge for a government trying to stabilize prices and restore economic confidence.
Pakistan is also heavily dependent on Gulf countries, especially Qatar, in the matter of LNG (Liquefied Natural Gas), and the current tension has exposed this weakness.
Additionally, the report said power shortage in the country has increased to around 3,400 MW, and some areas of northern Pakistan are experiencing power cuts of up to seven hours a day.
Pakistan’s Commerce Ministry has acknowledged that due to the lack of formal banking channels with Iran, some transactions still take place through barter, so Pakistan has a clear interest in ensuring that tensions between Washington and Tehran do not escalate into a protracted conflict.
–IANS
AY/DKP