Oil shock threatens Pakistan's economy with 1.5pc GDP loss. Former finance minister Hafiz Pasha warns that sustained oil prices above $100 could devastate the nation's external sector, potentially costing $12 to $14 billion over the next year. Petroleum imports may surge 25 to 30 percent while shipping and insurance premiums rise sharply due to regional tensions. The vulnerability extends to remittances, with 55 percent sourced from Middle Eastern economies facing contraction. Pakistan could see remittance inflows drop by $2 to $4 billion as labor demand weakens. The current account deficit risks ballooning from $2 billion to $6 to $7 billion by fiscal year-end. Double-digit inflation threatens to reverse recent stabilization gains, with prices potentially approaching 30 percent if oil reaches $120 per barrel.
