Business community says concerned at enormity of economic challenges

KARACHI: Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance and Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, has expressed grave concern over the mounting economic headwinds facing the country due to the ongoing conflict involving the USA, Israel, and Iran.

Addressing the business community on Wednesday, he emphasized that the rapidly escalating geopolitical crisis demands unprecedented national unity and immediate economic adaptation to shield the populace and the industrial sector from a devastating global energy shock.

The Former Provincial Minister highlighted that the disruption of global supply chains, exacerbated by tensions near the critical maritime chokepoint, Strait of Harmuz, has disproportionately impacted import-dependent economies like Pakistan.

With the country relying heavily on Gulf states for its foreign remittances, petroleum and almost entirely for its Liquefied Natural Gas (LNG) requirements, the sudden volatility in international energy markets is a cause for profound alarm.

As Brent crude prices have surged well past the USD80 per barrel threshold due to the conflict, the domestic market has been forced to absorb a staggering Rs 55 per litre increase in the prices of petrol and high-speed diesel.

Mian Zahid Hussain observed that the sharp rise in fuel costs is rapidly driving up inflation, expanding the already fragile current account deficit, and significantly raising business expenses in critical manufacturing sectors, which could affect Pakistan’s exports.

Hence, the government needs to cover these additional costs using the contingency fund to keep exports at their current levels.

Copyright Business Recorder, 2026