LAHORE: Business leaders have called for Pakistan to shift into an “economic emergency mode” to tackle growing energy challenges linked to global supply risks, particularly amid tensions in the Middle East. The call highlights concerns over the country’s reliance on imported fuel and the need for long-term structural reforms in the energy sector.

Speaking to Wealth Pakistan, Zaki Aijaz said the energy sector should be treated as a matter of national security, with a strategic focus on local resources such as hydropower, solar, nuclear energy and Thar coal. He stressed that expanding solarisation in industry and agriculture, including tube wells, could reduce dependence on external energy supplies.

Aijaz also urged a review of expensive LNG contracts and the development of strategic oil reserves to strengthen energy security. He noted that current geopolitical tensions have exposed longstanding economic vulnerabilities, including reliance on imported oil and gas, a weak export base and limited foreign exchange reserves.

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To ease pressure on the economy, he proposed promoting a “Make in Pakistan” approach to reduce imports of locally produced goods. He suggested temporarily restricting non-essential imports such as luxury items until economic stability improves.

While acknowledging recent conservation measures by federal and provincial governments, Aijaz described them as short-term steps, saying structural issues require broader policy reforms. He emphasised the need for an export-led growth strategy and increased regional trade, particularly with China, Central Asia and neighbouring countries.

He also highlighted risks linked to the Strait of Hormuz, urging exploration of alternative trade routes to avoid supply disruptions.

Separately, economist Dr Qais Aslam stressed the importance of diversifying crude oil import sources. He said Russian crude could offer a cost-effective option, warning that reliance on more expensive alternatives could increase financial pressure.

Citing data from the Pakistan Institute of Development Economics, he noted that every $10 increase in global oil prices could raise Pakistan’s annual petroleum import bill by up to $2 billion.

Dr Aslam added that improving regional relations, including with Afghanistan, could help Pakistan access Central Asian markets and secure lower-cost electricity through projects such as CASA-1000.