The Korangi Association of Trade and Industry (KATI) today urged the government to take the business community into its confidence before making decisions on energy conservation measures or imposing any potential lockdown, citing grave economic risks from escalating regional instability.
In a statement, KATI President Muhammad Ikram Rajput expressed deep concern over mounting tensions involving Israel, the United States, and Iran. He warned that a potential conflict in the Gulf, particularly any disruption to oil and gas supplies through the Strait of Hormuz, would have far-reaching consequences for the global economy and developing nations like Pakistan.
Rajput cautioned that such a scenario could trigger severe economic challenges, including a surge in petroleum prices, an intensified energy crisis, and a sharp increase in industrial production costs, which would directly impact output and slow overall economic activity. He emphasised that if the conflict expands, Pakistan’s economy and its export sector could come under significant additional strain.
While highlighting the potential threats, the KATI President also commended the Government of Pakistan’s diplomatic efforts aimed at de-escalating the situation between the United States and Iran. He noted that Pakistan has consistently advocated for peace and conflict resolution through negotiations, adding that the country’s balanced foreign policy is crucial for maintaining regional stability.
He further extended thanks to the Iranian government for allowing Pakistani vessels passage through the Strait of Hormuz, describing it as an important opportunity for Pakistan to make advance arrangements in light of potential energy shortages.
Welcoming the ongoing diplomatic initiatives to encourage dialogue, Rajput stated that these efforts could prove beneficial not only for the region but for the global community. He also appealed to the international community to take immediate steps to reduce tensions and work toward a sustainable peace.
The KATI President concluded that the industrial and business community strongly desires peace, as sustainable economic growth is dependent on a secure and stable environment. He expressed hope that continued diplomatic efforts would succeed in averting a major crisis.