The Threat to Shipping and Insurance Costs
The Strait of Hormuz is a crucial passage for global oil shipments. Business leaders in Pakistan are sounding alarms about the potential closure of this vital route. If it happens, shipping and insurance costs could skyrocket. This increase would have a domino effect on the local economy, affecting both businesses and consumers alike. 
It’s essential to understand that the Strait accounts for a significant portion of the world’s oil trade. Any disruption here could lead to widespread economic challenges.
Potential Consequences for Pakistan
Should the Strait of Hormuz be closed, the repercussions would be severe for Pakistan. The country relies heavily on imported oil, and a spike in costs could drive inflation rates higher. Business leaders urge for strategic measures to mitigate these risks. They emphasize the need for alternative routes and enhanced domestic energy production. Without proactive steps, Pakistan may face significant economic uncertainty.
