Rising global oil prices pose serious risks to economic recovery: BMP

The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) has warned that rising global oil prices, driven by escalating regional tensions, pose serious risks to Pakistan’s fragile economic recovery. BMP Chairman Mian Anjum Nisar cautioned that if international oil prices remain around USD 100 per barrel or climb higher, Pakistan could face significant economic setbacks. GDP could contract by one to one-and-a-half percent if the crisis persists, given the country’s heavy reliance on imported petroleum products and liquefied natural gas. The most immediate threat lies in the external sector. Pakistan may face an additional burden of USD 12 to USD 14 billion over the next year due to higher petroleum imports, rising shipping charges, and increased insurance premiums linked to geopolitical risks. The petroleum import bill alone could surge by 25 to 30 percent. Economists estimate that every USD 10 rise in global crude prices adds approximately USD 1.5 billion to Pakistan’s annual import bill.