According to the International Monetary Fund, the combination of soaring oil prices and slowing growth creates risks reminiscent of previous oil shocks in the 1970s and the more recent Financial Crisis of 2008, with the Bretton Woods institution estimating a 40 basis points (bps) rise in inflation and a 15 bps decrease in global growth for every 10% rise in oil prices. PIDE has warned that a closure of the Strait of Hormuz could trigger a wild oil price rally of up to $150 per barrel, causing Pakistan’s monthly fuel import bills to skyrocket to between $3.5 billion and $4.5 billion, while consumer inflation could jump from the current 7% to up to 17%. The country has launched Operation Muhafiz-ul-Bahr (meaning "Protector of the Seas"), a maritime security operation launched by the Pakistan Navy in March whose primary goal is to ensure the uninterrupted flow of trade through key Sea Lines of Communication (SLOCs).
Author: Alex Kimani
Published at: 2026-03-15 23:00:00
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