KATI Urges Government To Explore Low-Cost Oil And Gas Imports From Iran Through Local Currency Trade
President of the Korangi Association of Trade and Industry (KATI), Muhammad Ikram Rajput, has urged the Government of Pakistan to seriously examine the possibility of importing low-cost oil and gas from Iran through local currency transactions.
He said such a move could help meet the country’s energy needs at lower cost, ease pressure on foreign exchange reserves, and strengthen the national economy.
Calls For Swift Action Amid Potential Sanctions Relief
Rajput said Pakistan should move swiftly to capitalize on any potential easing of sanctions on Iran following ongoing U.S.-Iran negotiations.
He stressed that, as an energy-importing country, Pakistan needs access to affordable sources of oil and gas to support its industrial, agricultural, transportation, and domestic sectors.
He said that establishing a mutually beneficial trade mechanism with Iran based on local currency settlements would not only reduce import costs but also enhance economic cooperation between the two neighboring Islamic countries.
Lower Global Oil Prices Should Benefit Consumers
Rajput noted that recent regional tensions and retaliatory strikes had created uncertainty in the global energy market, driving up crude oil prices.
However, with international oil prices now showing signs of easing, he said the benefits of lower prices should be passed on promptly to Pakistani consumers, industries, and businesses.
High Energy Costs Hurt Industrial Competitiveness
The KATI president also highlighted that Pakistan’s electricity, gas, and overall energy costs remain among the highest in the region, undermining the competitiveness of local industries and placing additional pressure on exporters through higher production costs.
He said access to affordable energy would boost industrial output, improve exports, create employment opportunities, and encourage both domestic and foreign investment.
Government Urged To Adopt Pragmatic Energy Policies
Rajput called on the government to evaluate all available energy options and opportunities for regional economic cooperation in the national interest, enabling Pakistan to benefit from lower-cost energy and accelerate its journey toward economic stability.
Expressing optimism, he said the government would adopt pragmatic and forward-looking energy policies that would help reduce inflationary pressures, provide affordable energy to industry, and pave the way for sustainable economic growth.