ISLAMABAD, JAN 07 (DNA) –Pakistan’s decision not to become a party in US-Iran conflict is laudable and according to the national interests which has improved the global image of the country, a business leader said.

Pakistan has decided that not to take sides and not to compromise on its national security but the government should take immediate decisions amid mounting tensions between the US and Iran.

The conflict can result in unprecedented hike in energy prices and the government must be prepared to cushion its impact, said Shahid Rasheed Butt former President ICCI.

If the tensions escalate into a war it will disrupt oil 25 percent of oil and 33 percent of gas supplies to the oil importing countries spelling a disaster for all oil-importing nations, he added.

Shahid Rasheed Butt said that the tensions would also cause fluctuations in the currencies of many countries; it will hit stock markets values and lead to an immediate rise in oil and gold prices which will destabilize budgets and increase poverty.

He said that oil prices are already rising and will rise further unless the situation is relieved

Any disruption in oil supplies will be a disaster for Pakistan due to limited capacity to hold strategic oil reserves and absence of gas reserves which should be considered as US has oil reserves to satisfy ninety days of demand while India is holding reserves of oil enough for 10 to 12 days.

The business leader said that Pakistani ports are not equipped to handle large quantities of oil imports despite increased demand while gas production has reduced by almost 20 percent in the past four years.

He informed that the storage and handling capacity at Karachi port is chocking. Two of the three oil piers are non-functional and any accident could create a serious energy shortage in the country.

Karachi port has lived its natural life therefore over dependence on it is very dangerous therefore other ports should be expanded and upgraded without delay to reduce the load on Karachi port which is imperative for economic development and national security. =DNA

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