Inflation To Rise further in Pakistan as Russia-Ukraine war escalates

Web Desk — Following the Russian invasion of Ukraine, experts believe that inflation in Pakistan is expected to rise further.
According to Pakistan Business Council (PBC) CEO Ehsan Malik, Pakistan was already struggling to deal with the surge in global commodity prices, and the conflict between Russia and Ukraine would exacerbate the problem.

He said, “We saw Brent crude oil cross the $100-per-barrel mark.” “Prices of petrochemicals are directly linked with the global oil prices, hence they are expected to soar as well,” he added.

As a result of sanctions on Russian energy supplies, he predicted that European economies would diversify their sources of fuel, putting further pressure on oil prices.

As a result, the government of Pakistan will have little room to absorb the shock, causing local fuel prices to rise. As a result, fuel consumption may decline.

Pakistan’s top export destinations are the US, UK, and the European Union. Malik warned that any impact on European economies would negatively impact Islamabad’s export earnings.

“Russia and Ukraine collectively supplied 70% of Pakistan’s wheat requirements last year, so the ongoing conflict may push up import prices.”

He noted that while neither Russia nor Ukraine was major export markets for Pakistan, Moscow would pause investment in the Pakistan Stream Gas Pipeline until the conflict with Ukraine ended.