ME crisis poses credible risk of economic disruption to Pakistan: Tola

LAHORE: The ongoing unrest in the Middle East, coupled with Pakistan’s dependence on imported petroleum, poses a credible risk of economic disruption, said leading economist Ashfaq Yousuf Tola.

While speaking about the possible impact on Inflation, Current Account Deficit, and parity due to Middle East crisis, he said crude oil prices have risen in the last two weeks due to the ongoing Gulf conflict increasing to $76.31 per barrel on 19th June from $63.76 on 2nd June 2025.

There is a dual inflationary impact on Pakistan’s economy: firstly, higher crude prices widen the Current Account deficit, consequently putting pressure on the domestic currency against the greenback which in turn leads to inflation, he added. Secondly, said Tola, the direct impact of higher crude prices on domestic petrol rates may further fuel inflation and make life more difficult for the people of Pakistan.

Copyright Business Recorder, 2025