Pakistan's GDP growth decelerated to 2.0% in the final quarter of fiscal 2026, pressured by rising energy prices and supply chain disruptions linked to the ongoing Middle East crisis.
Natural gas prices are experiencing upward pressure due to the disruption of regular LNG supply chains from Qatar, exacerbated by the broader Middle East crisis. This supply instability is a primary factor contributing to the economic strain in regions reliant on these imports, such as Pakistan, where energy costs have surged.
The crisis is causing supply chain disruptions, specifically hindering the regular flow of LNG from Qatar, which drives up global energy prices.
Pakistan's economic recovery faces significant headwinds as regional instability disrupts LNG supplies from Qatar. Official data shows GDP growth slowed to 2.0% in the fiscal quarter ending June, falling well below analyst expectations as energy costs surge.
Growth is hampered by soaring energy prices and a lack of regular LNG supply from Qatar, both exacerbated by the ongoing Middle East crisis.