ISLAMABAD: Following the outbreak of war and the closure of the strategic Strait of Hormuz, all imports and exports between Pakistan and the United Arab Emirates (UAE) have come to a complete stop.
An official from Pakistan’s government defended the halt on UAE imports, stating it could have a silver lining. “Imports from Dubai are highly prone to underinvoicing, which causes major losses to our national exchequer,” the official said.
Before the stoppage, Pakistan used to export meat, vegetables, fruit, and rice to the UAE.
According to officials, Iran, China, and the USA are now fighting what is being described as a “war for their survival.” The United States aims to control global oil reserves to support the petrodollar system, which in turn gives it an advantage over China. As a result, China and Russia are backing Iran.
Meanwhile, the US and Israel are reportedly stepping back from direct fighting and pushing the UAE to the front lines. This shift suggests that a direct war between the UAE and Iran may be imminent.
Pakistan is facing severe economic troubles. The country is in debt to all the major parties involved in the conflict—except Iran. Because of these debt obligations, Pakistan cannot take sides in the growing confrontation.
Amid the crisis, Pakistan’s Ministries of Commerce and Finance are holding daily meetings regarding the future of Gwadar port. Officials believe the war, the closure of the Strait of Hormuz, and attacks on the UAE have exposed Dubai’s weakness as a strategic port.
In response, Pakistan is reportedly preparing an attractive shipping policy to turn Gwadar into an international transit trade hub. Plans are also underway to develop and streamline the road network in Balochistan. Authorities say they will also address insurgencies in the province to ensure stability.
A new policy is being framed to attract investors to the region, taking advantage of the shifting trade routes.