KARACHI: Chairperson of the Exchange Companies Association of Pakistan (ECAP) Malik Muhammad Bostan has voiced serious concern over escalating global and regional tensions, warning that instability in the Gulf region could have significant economic repercussions for Pakistan.
In a statement issued on Tuesday, Bostan said that the evolving situation in the Middle East, ongoing violence in Palestine, and increasing tensions along the Pakistan-Afghanistan border present a deeply troubling scenario for the Muslim world. He stressed that in such critical times, unity and coordinated, effective measures are essential to safeguard economic and strategic interests.
He noted that the Middle East remains one of Pakistan’s key economic partners. Millions of Pakistani expatriates working in Gulf countries contribute substantially to the national economy through remittances, which are a vital source of foreign exchange. Any prolonged instability in the region could disrupt trade flows, energy supplies and remittance inflows at a time when Pakistan’s economy is already navigating significant challenges.
He further pointed out that recurring airspace closures across several Middle Eastern countries have led to the cancellation of hundreds of flights from major Pakistani international airports. Thousands of passengers have been affected, while airlines are incurring financial losses. Flights to destinations including Saudi Arabia, the UAE, Qatar, Kuwait and Bahrain have faced disruptions.
The ECAP chairperson also highlighted concerns over shipping disruptions in parts of the region, which have created uncertainty among exporters and importers. Prolonged conflict could severely impact trade routes, delay consignments, and increase the cost of doing business.
Emphasising Pakistan’s heavy reliance on imported fuel, Bostan warned that supply chain disruptions could result in petroleum shortages and a surge in domestic fuel prices. Rising global crude oil prices would further increase the import bill and exert additional pressure on the country’s foreign exchange reserves.He called upon policymakers to closely monitor the situation and take timely, proactive steps to mitigate potential economic fallout.
