Pakistan economy gasps as Middle East war lifts oil prices and doubles down on inflation fears

Imports may surge as reserves face a sharper squeeze

Pakistan’s economy is under fresh pressure as conflict in the Middle East drives oil prices higher, feeding double-digit inflation and straining public and private finances. Analysts warn growth could slow sharply, while the already weak stock market underlines investor stress. With imports a key risk, Pakistan’s current account deficit could widen and foreign reserves may be depleted faster than expected.