Pakistan’s finance ministry has issued a fresh warning that renewed geopolitical tensions in the Middle East pose significant downside risks to the country’s inflation trajectory and external sector stability.
The assessment comes as the government anticipates the start of the new fiscal year with inflation remaining in double digits, underscoring the persistent macroeconomic headwinds facing the economy.
In its latest report, the ministry emphasized that while external shocks remain a concern, the government’s readiness and continued policy vigilance have strengthened Pakistan’s capacity to manage such disruptions effectively.
The statement signals a defensive posture as policymakers navigate a complex global environment where energy price volatility and supply chain disruptions can quickly translate into domestic price pressures.
The warning aligns with broader international concerns regarding the economic impact of Middle East instability.
The International Monetary Fund has previously flagged escalating tensions in the region as a significant headwind for global economic outlooks, including for the United Kingdom.