Pakistan's Oil Security Gap Exposed by Iran-US Tensions

Pakistan's vulnerability to external energy shocks has been laid bare once again by escalating tensions between Iran and the US, coupled with uncertainty surrounding the Strait of Hormuz.

The country relies heavily on imported oil, but does not have a government-owned strategic petroleum reserve capable of sustaining it during war, global crises, maritime disruptions or prolonged supply interruptions.

Senior officials in the Ministry of Petroleum said that during the recent Iran-US tensions, the Ministry monitored petroleum product availability daily to prevent shortages. However, energy experts stressed that emergency monitoring cannot replace a dedicated strategic reserve.

The concept of strategic petroleum reserves has been discussed in Pakistan for years, but successive governments have repeatedly delayed implementation due to financial constraints, policy inconsistency and competing priorities.

Energy specialists argue that Pakistan should maintain reserves sufficient for at least 60 days of consumption, while many developed countries hold 90 days or more. Legal expert Azhar Siddique said he filed a petition in 2020 seeking the establishment of strategic petroleum reserves, but its recommendations were not implemented during the PTI government.