Iran-Israel Ceasefire Brings Relief to Pakistan’s Economy
The announcement of a ceasefire by US President Donald Trump after a 12-day tense situation between Iran and Israel proved to be a welcome move for global financial markets.
Immediately after the ceasefire announcement, global crude oil prices fell significantly, which was also seen as the first positive impact on Pakistan’s economy.
The price of Brent crude oil in the global market fell by 10% to $69 per barrel, while the price of US WTI rose to $66 per barrel.
The Pakistan stock market also saw a clear improvement, and saw a record increase of 6,000 points — a clear sign of market confidence.
According to economist Mian Zahid Hussain, Iran was not capable of a long war, and its influence in the region had been limited due to American control.
According to him, the end of the war will bring stability to the region, which will directly benefit Pakistan’s economy.
He said, “The threats that were looming over Pakistan have been averted, now the investment prospects are bright.”
Economic analyst Tanveer Malik said that the recent decline in oil prices is very welcome for Pakistan.
Due to the war, prices had reached $60 to $76 per barrel, which was increasing pressure on foreign exchange reserves.
According to him, the ceasefire will support the value of the rupee against the dollar and will also potentially reduce inflation.
Muhammad Adnan Paracha says that Pakistan’s economy stands on two major pillars — exports and remittances.
In the event of war, both of these would have been severely affected, but now that an atmosphere of peace has been established, the wheels of the economy can be turned around again.
He suggested that Pakistan should find new export markets, especially in Europe.
