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Caught in the Crossfire: How the U.S.–Iran War Impacted Pakistan

Date:

Zarlish Ali 

While negotiations offer hope abroad, we,the ordinary citizens of Pakistan are already paying the price at home. Fuel costs have surged, rising inflation, and the burden of IMF loans – subsidy arrangements and structural adjustment policies are felt nationwide . Pakistan has always been instrumental in regional diplomacy; this is not new. Yet, while our strategic importance is clear, we must also shift our focus to strengthening and stabilizing the economy at home. This is where we are falling behind. Yes, Pakistanis can take pride in our diplomatic role, but the nation also needs tangible leverage at home.

Why a distant war feels immediate at home. According to the report of Al Jazeera, Pakistan imports 80% of its imports through the Gulf Region; authorities have failed to roll out alternative measures for conserving  fuel, causing an economic crisis for years. Particularly, as a university student , I faced three weeks of online mode with rising fare prices of indrive and yango charging double to triple on our usual prices. Still, we have Fridays on online mode with chances of complete lockdown in upcoming weeks. Meanwhile, rising inflation has pushed the prices of fruits, vegetables, meat, and chicken sharply upward, multiplied by factors such as monsoon rains. While the government apparently announced free public transport in the last few days to now with the news of  complete shutdown of local  transport , hidden behind the cover of security for upcoming second round of negotiations or maybe reducing consumption of fuel. Beforehand , local transport fares here continued to rise unchecked. This is a major fallout at governance level. While schools and colleges remained closed, a particular section of society continued to enjoy holidays, while petrol and diesel consumption continued  unchecked. Adding to the strain, the recent increase in taxes on solar energy has made electric vehicles and e-bikes largely unaffordable and impractical for ordinary citizens.

Apparently, a ceasefire announcement will not let the oil prices go down easily. In particular, we need to understand the dynamics of how imports and exports work. Companies that bought fuel at high prices cannot instantly lower costs, and global supply chain disruptions have increased freight, insurance, and shipping costs. According to recent survey data, Pakistan faces some of its sharpest increasing prices of fuel with half of respondents citing inflation as a major concern. Bangladesh, India and Pakistan import almost two third of their local LNG supplies via  strait of Hormuz .Signaling its not only about national but at regional level too. In 2024,  gas fired generation plants dominated roughly half of  the power sector of Bangladesh and one quarter for Pakistan.Disrupted LNG supplies would threaten electricity supply security in those price sensitive markets and could lead to price hikes and production mismanagement for fertilizers. Pakistan is a resilient country, but the fallout affects governance, fiscal policies, bureaucratic structures, and institutional capacity. Ceasefire may bring short term relief in petrol and oil prices but instant relief is not possible, supply chain disruptions and market adjustment shows positive immediate relief is unlikely. In a world of changing scenarios, distant conflicts can impose immediate and lasting costs on countries that played no role in initiating them.

For Pakistan, true growth and stability will require not only becoming relevant in the international realm but also strengthening strong domestic policies to buffer against global shocks. The country must prioritize diversifying its energy sources and adopting long-term policy reforms to ensure sustainable growth. It should also pay focus to domestic factors affecting citizens well being nowadays like HIV outburst in Taunsa due to domestic level negligence to farmers protest.While Pakistan has performed well in safeguarding national security and strategic interests, economic resilience must come first, working hand in hand with security to protect the wellbeing of its citizens. Policymakers should recognize that peace alone is not enough; unless the economy at home is shielded from external shocks, otherwise ordinary citizens will continue to bear the cost of wars they had no part in. Pakistan should recognize the fact that its strategic achievements should translate into tangible benefits at home too.

 

The writer is student of  National Defence University, Islamabad

 

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