FPCCI official warns Middle East conflict could drive inflation and strain exports

ISLAMABAD: A senior official from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has cautioned that the ongoing conflict in the Middle East may have significant repercussions for Pakistan’s economy, particularly through rising fuel prices and increased costs for industry.

According to the FPCCI official, the escalation of hostilities in the Middle East has already led to a surge in global fuel prices. This development is expected to place further pressure on Pakistan’s economy, which is already grappling with inflation and challenges in the export sector.

The FPCCI representative urged the government to utilize the country’s contingency fund to help mitigate the impact of higher fuel costs. The official stated that industries are facing mounting expenses as a result of the fuel price hike, which could ultimately lead to higher inflation and reduced competitiveness for Pakistani exports.

The business leader emphasized the importance of proactive measures, noting that the government should act swiftly to support the industrial sector and stabilize the economy. The official warned that if the situation in the Middle East continues to deteriorate, the economic fallout could be even more severe for Pakistan.

The FPCCI official also highlighted the interconnectedness of global markets, pointing out that disruptions in one region can have far-reaching consequences for countries like Pakistan. The official called on policymakers to remain vigilant and to prepare for potential shocks to the economy stemming from external factors.

In light of these concerns, the FPCCI has recommended that the government closely monitor developments in the Middle East and be ready to implement measures to safeguard Pakistan’s economic interests.