Economy amidst conflicts

Amid rising tensions in the Middle East and ongoing disruptions in the Strait of Hormuz, Pakistan is moving forward with its first Strategic Petroleum Reserves (SPR) to safeguard against potential supply chain disruptions. This shift from a fragile, just-in-time commercial inventory model to a more robust emergency oil reserve underscores the government's proactive approach to economic stability amid geopolitical conflicts. By establishing a 45-day emergency oil stockpile, Pakistan aims to buffer its economy from the adverse effects of prolonged supply interruptions, highlighting the increasing importance of strategic reserves in maintaining economic resilience in volatile regions.