Story perspectives

Pakistan's Economic Crisis: Fuel Prices Soar, GDP Risks Plummet

3/16/2026

Summary

Story summary

Pakistan faces an economic crisis as oil prices rise from Middle East conflicts, with Hafiz Pasha, a former finance minister, warning GDP could fall 1.0–1.5% and current account deficit rise to $6–7 billion.
Reliance on Gulf fuel and LNG heightens vulnerabilities as disruptions threaten agriculture.
Rising fuel costs push inflation past 10%, straining households.
Economists urge policy shifts, including price adjustments and a shift to renewable energy to reduce imports.

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Story summary

Pakistan faces an economic crisis as oil prices rise from Middle East conflicts, with Hafiz Pasha, a former finance minister, warning GDP could fall 1.0–1.5% and current account deficit rise to $6–7 billion.
Reliance on Gulf fuel and LNG heightens vulnerabilities as disruptions threaten agriculture.
Rising fuel costs push inflation past 10%, straining households.
Economists urge policy shifts, including price adjustments and a shift to renewable energy to reduce imports.