Oil shock may cost Pakistan 1.5pc of GDP: experts

Experts warn that the ongoing US-Iran war and resulting oil price surge could cost Pakistan 1.0–1.5% of GDP, with the external sector facing a $12–14 billion shock over the next year. Rising petroleum import costs, global shipping and insurance premiums, and potential loss of Middle East remittances compound the economic threat. Pakistan risks revisiting its 2021–22 financial crisis conditions if oil prices remain elevated.