Securing Pakistan's Trade and Energy Interests Amid Regional Uproar

Uzma Zia
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Uzma Zia: Pakistan Institute of Development Economics, Islamabad

No 2026:76, PIDE Policy View Point from Pakistan Institute of Development Economics

Abstract: Executive Summary: The dual shocks of Pakistan-Afghanistan conflict and the Middle East conflict have hit Pakistan equally as other countries worldwide. Tensions along the border are affecting Pakistan's border security, trade flows, lives and livelihood and macro-economic factors. Labor class dependent on bilateral and transit trade activities, gets affected when violence flares. These disruptions are happening at the same time when there is a conflict going on in the Middle East, involving the United States, Israel and Iran. Escalating tensions in Middle East have contributed to higher oil prices, disrupted supply chains, high business costs and reduced purchasing power of households in Pakistan as well as internationally. These combined shocks pose a risk to Pakistan's role as a regional trade gateway by undermining trade continuity, energy security, and regional connectivity. Pakistan needs an immediate policy action to protect trade, energy security and regional connectivity.

Pages: 8 pages
Date: 2026
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