“MAJOR SHOCK”
Export industries remain particularly vulnerable, while energy-dependent sectors such as manufacturing are also feeling the strain as Pakistan grapples with mounting economic pressure.
Economists say the government’s measures are necessary to prevent a full-blown energy emergency.
Ali Salman, CEO of the Policy Research Institute and Market Economy, described the war as a “major shock for Pakistan’s economy”.
“If the prices double from where they are now, it will affect two things – the inflation on households … cost for goods and services will increase. It will also affect government revenue,” he said.
The Middle East crisis is also hitting Pakistan’s textile sector, a backbone of the country’s export revenue.
One company that has been affected is Monarchy. The fashion brand’s CEO Ali Qureshi said more than 70 per cent of its sales are made online.
Online sales from Gulf countries have plunged significantly, while airport closures have disrupted travel and business, he added.
“There is a big chunk of clients I have, who are sitting in Dubai, Qatar, Oman, Saudi Arabia … When they come to Pakistan, they buy from us,” he noted.
But that customer channel has effectively been cut off, he said. “The flights are closed and they are not able to come.”
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