BMP voices its concerns over escalating war in ME

The Businessmen Panel (BMP) of the Federation of Pakistan Chambers of Commerce and Industry has voiced serious concern over the escalating war in the Middle East, cautioning that prolonged instability in the region could severely affect Pakistan’s external trade, energy imports and remittance inflows at a critical time for the national economy.

BMP Chairman and former FPCCI president Mian Anjum Nisar said the suspension of flights and disruption in shipping activities in parts of the region have already created uncertainty among exporters and importers. He noted that the Middle East is one of Pakistan’s most important economic partners, and any sustained conflict would inevitably disturb trade routes, delay consignments and increase the cost of doing business.

Anjum Nisar pointed out that the United Arab Emirates stands as one of Pakistan’s largest trading partners, with bilateral trade running into billions of dollars annually. Saudi Arabia also plays a pivotal role, not only as a key destination for Pakistani exports but as a major supplier of petroleum products. Additionally, Pakistan imports liquefied natural gas from Qatar, making stability in the Gulf region vital for the country’s energy security.

He warned that rising geopolitical tensions could push global oil prices higher, increasing Pakistan’s import bill and exerting fresh pressure on foreign exchange reserves.

“Our economy remains heavily dependent on imported fuel. Any escalation that disrupts supply chains or leads to a spike in crude oil prices will directly fuel inflation and widen the current account deficit,” he said.

The BMP chairman stressed that exporters are already operating under challenging conditions, including high energy tariffs, expensive financing and global market competition. A prolonged war, he said, could further complicate matters by raising freight charges and insurance premiums, as shipping companies reassess risks in the region. Such additional costs would make Pakistani products less competitive in international markets.

Another critical issue raised by Anjum Nisar was the potential decline in remittances. Millions of Pakistanis are employed in Gulf countries, and their remittances constitute a major source of foreign exchange for the country. He noted that insecurity in the region may affect workforce mobility and reduce the usual seasonal inflows, particularly during Ramazan and ahead of Eid, when overseas Pakistanis traditionally send higher amounts back home.

“Remittances have consistently supported our external account and helped stabilize the rupee. Any dip in inflows, even temporarily, will create additional stress on our currency and financial markets,” he said.

He urged the government and the State Bank to closely monitor currency markets and ensure adequate liquidity to prevent undue volatility.

Anjum Nisar further stated that Pakistan’s ambitious export growth targets could face setbacks if regional markets remain unstable. He observed that a significant portion of Pakistan’s exports are destined for Middle Eastern countries, and a slowdown in these markets would directly impact industrial output and employment at home.

“If demand from the Gulf region declines or supply chains remain disrupted, our exporters will struggle to meet growth projections,” he remarked.