ISLAMABAD: Pakistan is expected to be affected by the ongoing Middle East conflict through global price transmission, in line with other major economies; however, the impact on the fertilizer sector is likely to remain limited, supported by adequate domestic stocks and a significant expansion in local production capacity.
This was stated by Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), during a press briefing.
The IMF official also said that the programme with Pakistan is progressing well, as the two sides have reached a staff-level agreement, and the IMF Board is expected to approve the release of a new tranche.
Azour said, “Pakistan will be affected, like all important countries, through price transmission, but again the impact will be less on fertilizers because the stocks are sufficient, besides the fact that Pakistan increased its capacity to produce this important agricultural input. We have reached a staff-level agreement.
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He further said that a lot of countries have taken some immediate measures to reduce the impact of the shock, using, in a relatively wise manner, fiscal instruments to provide support to those who need it.
Regarding Jordan, Egypt, and Pakistan, the IMF official said that the three countries already have programmes.
And in each of those programmes was designed to help these countries and help them absorb shocks and reduce their vulnerabilities, he added.
Copyright Business Recorder, 2026
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