Middle East Tension: Pakistan in a better position than before to withstand economic impact
Analysts at the global credit rating agency Moody's say that Pakistan is in a better position than before to withstand the economic pressure resulting from the ongoing tension in the Middle East. According to experts, the country's current economic situation is more stable compared to 2022.
In 2022, when there was a sudden increase in oil prices in the global market, Pakistan faced severe economic difficulties. At that time, the country's foreign exchange reserves were low, and the increase in the import bill had burdened the economy. However, some improvement is now being seen in the situation.
According to the report, changes in Pakistan's economic policies and improvements in the balance of external payments have helped the country withstand global shocks. Although the situation in the Middle East could affect oil prices globally, Pakistan's current system has a better capacity to absorb this impact.
Analysts further state that although Pakistan's economy is still facing challenges, the measures taken over the last two years have provided it with some degree of protection. Fiscal discipline by the government and ongoing programs with the IMF have also played an important role in economic stability.
Regarding the future, experts believe that if oil prices in the global market increase further, Pakistan will have to pay more attention to its energy needs and imports. Overall, Pakistan's economic resilience has increased, which is a positive sign for the country's economy.