Mian Anjum Nisar calls for energy security, export protection and economic reforms
Islamabad
The Businessmen Panel (BMP) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has warned that prolonged conflict in the Middle East could intensify economic pressures on Pakistan, as the International Monetary Fund (IMF) projects a 1.3 per cent contraction in the combined output of the Middle East, North Africa and Pakistan region during 2026.
BMP Chairman and former FPCCI president Mian Anjum Nisar said regional instability posed serious risks to Pakistan’s economic recovery because of its dependence on imported petroleum products, liquefied natural gas (LNG), Gulf trade routes and remittances from overseas workers.
The IMF’s latest regional economic outlook, released in Dubai on Thursday, attributed the projected contraction to the US-Israeli-led war against Iran, which has disrupted energy production, shipping, tourism, trade and business confidence. The Fund expects the regional economy to rebound by 6.6 per cent in 2027, provided the conflict begins to subside in early 2027 and trade gradually returns to normal.
Anjum Nisar said the forecast highlighted the urgency of protecting Pakistan’s fragile economic gains from external shocks. He maintained that any prolonged disruption in energy supplies and international shipping could raise import costs, increase inflationary pressures and complicate efforts to maintain macroeconomic stability.
He observed that higher international oil and gas prices would directly affect Pakistan’s import bill, placing additional pressure on foreign exchange reserves and the current account. Rising fuel costs could also increase transportation charges, electricity generation expenses and production costs across manufacturing industries, weakening the competitiveness of Pakistani exports.
Pakistan’s exposure to the Gulf region extends beyond energy imports. The region is an important destination for Pakistani workers and a major source of remittances, while also providing markets for domestic products and opportunities for commercial cooperation. Any sustained slowdown in Gulf economies could therefore affect household incomes, domestic consumption and foreign exchange inflows.
The BMP chairman stressed that exporters were already facing challenges arising from expensive energy, financing costs and competition in international markets. Further increases in freight rates, marine insurance premiums and delivery times could make Pakistani products less competitive, particularly in textiles, garments, engineering goods and other value-added sectors.
He emphasised that maintaining uninterrupted access to energy and international markets should remain a priority for economic policymakers. The government, he said, needed to coordinate with industry representatives to assess emerging risks and ensure that businesses could continue operating without additional disruptions.
The IMF has warned that further interruptions to energy production and trade routes could push prices higher and worsen the regional outlook. It has also highlighted the possibility of tighter external financial conditions if inflation concerns intensify, interest rates rise and investors reassess expectations about productivity gains from artificial intelligence.
Anjum Nisar said these international developments underlined the importance of strengthening Pakistan’s economic fundamentals rather than relying solely on temporary stabilisation measures. He called for policies that encourage investment, improve productivity, expand exports and reduce the economy’s vulnerability to fluctuations in global commodity prices.
He also stressed the need to diversify energy sources and accelerate investment in domestic alternatives, including hydropower, solar and wind energy. Greater energy efficiency, improved transmission infrastructure and a predictable pricing framework could help reduce production costs and provide industries with a more stable operating environment.
The BMP has previously advocated progress on the Iran-Pakistan gas pipeline, arguing that alternative energy arrangements could help address Pakistan’s long-standing supply challenges. Anjum Nisar maintained that energy planning should focus on affordability, reliability and national economic interests, while taking applicable legal and international obligations into account.
He further called for improved trade facilitation, stronger regional commercial links and practical measures to reduce logistical bottlenecks. Efficient customs procedures, reliable transport connections and predictable regulations would help exporters manage uncertainty and exploit opportunities in alternative markets.
The IMF’s projected regional rebound in 2027 offers a potential improvement in the outlook, but it remains conditional on the conflict easing and trade normalising. The Fund has cautioned that exceptionally high uncertainty continues to cloud economic prospects, with further energy disruptions representing a major downside risk.
Anjum Nisar said Pakistan should use the present crisis to accelerate structural reforms, strengthen fiscal management and protect productive investment. He emphasised that price stability must be pursued alongside policies that support employment, industrial expansion and export growth.
He urged the government to maintain close consultation with the business community while preparing contingency measures for possible increases in fuel prices, shipping expenses and supply-chain disruptions.
