ISLAMABAD, March 3: Pakistan will have to spend an additional $1 billion to import oil due to uncertainty arising out of the Iraq crisis, says Shaukat Aziz, the prime minister’s adviser on finance.

“Our oil import bill will be up by $1 billion in case of war in the Middle East and this will also further increase petroleum prices in the country,” he told a news conference held on Monday in connection with the release of Mid-Year Review of Economic Performance.

However, he pointed out, Pakistan had an adequate oil reserves to meet any eventuality. “Our supply is such that we will hopefully be receiving oil from Saudi Arabia, Iran, United Arab Emirates and Kuwait in case of a war in the region.”

Pakistan, he said, was not importing oil from Iraq and as such there should not be any interruption in supplies.

In reply to a question, Mr Aziz admitted that oil prices in the country had already increased manifold, especially due to the threat of US attack on Iraq. “But we cannot do anything, because prices are rising in the international market which is causing problems,” he said, adding that sufficient stock of oil and other essential commodities had been kept by the government.

Generally, officials anticipate that oil prices will reach $45 or $46 per barrel in case of war, forcing the authorities to plan an additional $1 billion worth of import and thus making an oil bill of $4 billion in 2002-03.

Mr Aziz said that Organization of Petroleum Exporting Countries was likely to produce an additional 1 billion barrel per day to meet the shortage in the international market.