Updated 2 May 2026 at 14:55 IST
In the backdrop of surging crude oil prices, and global supply chain disruption, Pakistan is reeling under an energy shock as the South Asian country’s oil import bill skyrocketed to $800 million from $300 million. Pakistan I Oil Shock | Image:
AI Generated Representative Image Pakistan Oil Shock: In the backdrop of surging crude oil prices, and global supply chain disruption, Pakistan is reeling under an energy shock as the South Asian country’s oil import bill skyrocketed to $800 million from $300 million.
The jump in its import bill comes after the recent stalemate in Iran-US peace talks, which has increase global uncertainty, and placed pressure on the import bill of several Asian economies.
The rising import bill of Pakistan is expected to spread across Pakistan’s economy such as agriculture, transport, food prices and household consumption.
Economist Kamran Butt told Dawn that oil price increases typically trigger a chain reaction. “They increase transportation costs, push up the prices of daily-use commodities and food items, raise the overall cost of living, reduce purchasing power, increase poverty and unemployment, slow economic activity and eventually fuel public discontent,” he said.
In its statement, the central bank said prolonged conflict in the Middle East had intensified risks to the macroeconomic outlook.
“Global energy prices, freight charges and insurance premiums continue to remain significantly above pre-conflict levels,” it noted.
Meanwhile, the import reliance places pressure on Pakistan’s energy demand, which is exposed to global oil price hikes.
Analysts cited by Al Jazeera said the impact is compounded by Pakistan’s dependence on remittances from workers in Gulf countries, which could be affected by the regional conflict.
The government faces a constrained policy environment due to its programme with the International Monetary Fund, which limits fiscal flexibility. Analysts cited by Al Jazeera said policymakers are weighing whether to pass on higher global oil prices to consumers or absorb some of the impact through subsidies.
https://www.republicworld.com/business/pakistan-s-oil-import-bill-surges-from-300-million-to-800-million-here-s-what-you-need-to-know
