Pakistan Economic Crisis from Middle East War

Pakistan is facing a severe economic crisis exacerbated by the Middle East war involving the United States, Iran, and Israel. The conflict has led to a surge in oil and natural gas import costs, resulting in over 14 percent increase in petrol prices and widespread rolling blackouts across Pakistan. This energy shock is devastating for small businesses like Sheikh Nadeem's bedding store and Mohammad Ahsan's jewellery kiosk, who struggle to cover expenses and pay workers. Inflation remains high, and unemployment is a concern, with a significant portion of the population living in poverty. The International Monetary Fund has lowered Pakistan's 2026 growth forecast, highlighting the challenges. Pakistan is attempting to mediate between the United States and Iran to resolve the crisis, driven by its urgent economic imperative.