<h1><strong>Strait of Hormuz closure poses grave risk to Pakistan economy</strong></h1>
<p>The potential closure of the Strait of Hormuz — one of the world’s most critical oil transit chokepoints —could deal a devastating blow to Pakistan’s already fragile economy, with soaring production, shipping, and insurance costs threatening industrial output, exports, and employment.</p>
<p>Zubair Motiwala, Chairman of the Businessmen Group (BMG) and former CEO of the Trade Development Authority of Pakistan (TDAP), warned that a shutdown of the Strait—located between Iran and Oman—would significantly disrupt supply chains. “Our imports of raw materials, 30 to 40pc of which pass through this route, would become prohibitively expensive, making continued production unsustainable,” he said.</p>
<p>Motiwala noted that freight markets were already strained due to the ongoing Israel-Iran conflict. He pointed to Iran’s parliament approving a move to close the Strait in retaliation for US strikes on its nuclear facilities, which he said could trigger a severe economic shock for oil-importing countries like Pakistan.</p>
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