Pakistan’s Oil Supply Resilience Amid Middle East Tensions

KARACHI: Arab Light crude experienced significant price increases, rising over 21.3% in June 2025 and 11% since mid-June, amid escalating geopolitical tensions in the Middle East. The key factor is the Strait of Hormuz, an essential oil chokepoint that facilitates the movement of large volumes of oil globally.

Pakistan, heavily reliant on the Middle East for its petroleum and gas imports, sees much of its energy supplies traversing this vital waterway. Despite these dependencies, Pakistan’s exposure to potential disruptions remains manageable. The country’s oil imports represent a minor fraction of the total exports from the region.

Furthermore, the availability of alternative routes and a diversified local energy mix is expected to alleviate potential supply disruptions. This strategic positioning should help maintain stability in Pakistan’s energy supplies, according to AKD Securities Limited.