Heightened tensions could jeopardise stability

Businesses worldwide, already under strain, dread the escalation of the Middle East conflict, but Pakistan stands to be amongst the hardest hit despite its lack of direct involvement, especially if the conflict spreads to encompass Western Asia. Heightened tensions could disrupt vital trade routes, hinder cross-border commerce, jeopardise energy imports and intensify security concerns, further deterring much-needed investment. Additionally, Pakistan’s close proximity and shared borders with Iran increase its vulnerability to unforeseen fallouts from the conflict. An observer commented on the recent events, stating: “Israel has warned of consequences following Iran’s strikes. The pressing question within business circles is whether this was a one-off retaliation or an indication of the conflict expanding beyond the Middle East.”