Middle East Conflict Poses Risks to Pakistan Economy: SBP

The State Bank of Pakistan (SBP) warned that ongoing tensions in the Middle East could pose downside risks to Pakistan’s financial stability, potentially impacting inflation, external balances, and economic growth. Elevated oil prices and supply chain disruptions could reignite inflationary pressures and strain the country’s external account, ultimately slowing growth momentum. Despite concerns, the banking sector remains resilient.