Economic Affairs Division flags economic risks from renewed US-Iran conflict

The Economic Affairs Division has cautioned that a renewed conflict between the US and Iran could significantly harm Pakistan's economy by driving up energy prices, fueling inflation, and necessitating more external financing. This comes at a time when Pakistan is already grappling with infrastructure delays and funding shortfalls for projects like the Lyari freight corridor. The warning underscores the broader geopolitical implications for Pakistan, emphasizing how international tensions can ripple through regional economies and affect domestic economic stability.