Middle East | Pakistan

China opposes any escalation in Middle East

WASHINGTON: The war in the Middle East will have a cascading impact on the global economy, even if the fragile ceasefire announced by US President Donald Trump takes hold, World Bank President Ajay Banga told Reuters in an interview on Friday. And the damage will be far more serious if the ceasefire fails and the conflict escalates, he said. Banga on Tuesday said global growth could be lowered by 0.3 to 0.4 percentage points in a baseline scenario, with an early end to the war, and by as much as 1 percentage point if it endures. Inflation could increase by 200 to 300 basis points, with a much higher impact of up to 0.9 percentage points if the war continues, he said. The war, which has killed thousands of people across the Middle East, has sent the price of oil up by 50pc while disrupting supplies of oil, gas, fertiliser, helium and other goods, as well as tourism and air travel. The two-week ceasefire announced by Trump appears tenuous, with Israel and Iran continuing strikes. Iran said on Friday that blocke...

Islamabad - The war in the Middle East will have a cascading impact on the global economy, even if the fragile ceasefire announced by US President Donald Trump takes hold, World Bank President Ajay Banga tells Reuters in an interview.

The International Monetary Fund (IMF) expects to have to provide up to $50 billion in immediate financial assistance to countries affected by the Middle East war, its managing director said on Thursday, with the crisis likely to have lasting economic effects. “Given the spillovers of the Middle East war, we expect near-term demand for IMF balance-of-payments support to rise to somewhere between $20bn and $50bn, with the lower bound prevailing if the ceasefire holds,” Kristalina Georgieva said, according to prepared remarks shared with AFP. She added that food insecurity due to transport and supply chain disruptions caused by the war was expected to affect at least 45 million people. “Even in a best case, there will be no neat and clean return to the status quo ante,” she said, as a fragile ceasefire appeared to hold on Thursday. The IMF chief was kicking off the annual Spring Meetings co-hosted by the IMF and the World Bank in Washington, which brings together top economic policymakers from around the world. ...

Pakistan has started resuming flight operations after the recent ceasefire in the Middle East, with air traffic gradually returning to normal at major airports across the country.

Deputy Prime Minister and Foreign Minister (DPM/FM), Senator Mohammad Ishaq Dar on Thursday spoke with Uzbekistan’s Foreign Minister Bakhtiyor Saidov to discuss the latest developments in the Middle East and the wider region.

KARACHI: Despite turbulence stemming from the ongoing Middle East conflict, the country received 17 per cent higher remittances in March compared to February, the State Bank of Pakistan announced on Wednesday. The $3.8bn inflow was the highest so far this fiscal year, but it was 5pc lower compared to $4bn in March FY25. The war did not impact remittances from the Middle East, as inflows from almost all countries experienced positive growth. Currency experts said that the higher inflow in March was also due to Ramazan, but the war in the Gulf was more significant than anything else. Pakistanis working in the Gulf countries did not return home; instead, hundreds of Pakistanis have been applying for UAE visas. Pakistan gets fiscal year’s highest inflow of $3.8bn The SBP data showed that the country received a total of $30.321bn during July-March FY26, indicating an increase of 8.2pc or $2.29bn. The country received $28bn in 9MFY25. Remittances are the backbone of the country, as it largely relies on inflows to c...

ISLAMABAD: Opposition Leader in the National Assembly Mehmood Khan Achakzai on Wednesday extended “unconditional support” to the government in its efforts for peace in the Middle East. Responding to Law Minister Azam Nazeer Tarar’s speech, in which he requested the opposition to defer its protest planned for Thursday, Achakzai said that in his speech on Tuesday, he had called for former premier Nawaz Sharif, President Asif Ali Zardari and Imran to sit together in the current situation and move the country forward. He said that he, along with Opposition Leader in the Senate Allama Nasir Abbas, would convince Imran to engage in political dialogue. “I had also said earlier that we should not point fingers at each other. At the very least, we should agree on democratic principles,” he said. “I don’t know why you people think we are mad. Only a mad person would not be happy with today’s success of Pakistan,” he said, lauding the government’s mediatory role in the Middle East crisis. “We will provide you with uncon...

ISLAMABAD - Welcoming the suggestions by the opposition in the current critical scenario, Minister for Finance Muhammad Aurangzeb on Tuesday informed the National Assembly the economic impact of Middle East unrest could continue for further weeks.

ISLAMABAD: Finance Minister Muhammad Aurangzeb on Tuesday said the ongoing conflict sparked by the US-Israeli war on Iran has not adversely impacted Pakistan’s remittances from the Middle East. “Some members spoke of remittances, which is true. [However,] thankfully, there has been no impact on remittances as of yet,” Aurangzeb said while speaking on the National Assembly floor. “However, the reality is, roughly between 40 to 50 per cent of our remittances are coming from the GCC (Gulf Cooperation Council) countries,” the minister said, pointing out the region’s large contribution. “So we are also reviewing its elasticity, that what difference it can make on the balance of payments and the current account,” he added. Noting that other lawmakers had “rightfully” wondered what impacts the conflict would have on Pakistan’s economy, Aurangzeb said the government was regularly monitoring several aspects. “Not only is the oil and gas bill increasing, but trade and insurance cost has gone up and the vessels availabl...

Before war erupted in the Middle East, fisherman Peter Bruce spent about £5,000 ($6,600) on diesel to trawl the North Sea for haddock and cod, the main species used in fish and chips. “Now, the last trip we spent about £10,000,” he told AFP, despite his crew reducing the speed of the boat to save fuel. Bruce, whose boat, Budding Rose, is based in the Scottish port of Peterhead, estimates the extra costs over a year could exceed £100,000. It was not yet clear whether the rise in energy prices would have an immediate effect on the price of fish, Bruce said. But he is worried that the hike in fuel prices will hit customer demand for the classic British meal that was already facing challenges on numerous fronts. Bruce’s catch is sold at auction in Peterhead before being transported around Britain and abroad. He fears that customers “will stop buying so much fish and chips and they’ll stop going out for meals so much”. Classic dish The classic recipe for fish and chips — white fish deep-fried in batter, chips, and...

Bilawal Bhutto Zardari, Chairman of the Pakistan Peoples Party, urged political forces to set aside differences and work collectively in light of escalating tensions in the Middle East.

Flight operations from Pakistan faced significant disruption on Saturday as escalating tensions in the Middle East led to the cancellation of dozens of flights to regional destinations.

Prime Minister’s Adviser on Political Affairs Rana Sanaullah on Friday said that the prices of petroleum products had increased due to the ongoing war in the Middle East, adding that the government “has nothing to do with it”. His remarks come a day after an unprecedented increase of 43 per cent and 55pc in the prices of petrol and high-speed diesel (HSD), respectively, to cushion the impact of global oil price shocks amid the US-Israel war on Iran. The decision was heavily criticised by the government’s opponents. In a televised address, Sanaullah said that there was no example of such an increase in global petroleum prices in the past. “This rise is also hitting Pakistan, that’s why we increased petrol and diesel prices yesterday,” he said. He said that before announcing the hike in prices, the government undertook major austerity measures. “The government spent Rs129 billion and didn’t allow the burden to pass on to the public for the past three weeks,” he said. However, this could not go on forever, he sa...

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index continued its bullish momentum on Wednesday, surging by over 6,700 points as investors appeared hopeful of de-escalation in the Middle East. The KSE-100 index climbed by 6,768.25 points, or 4.55 per cent, to close at 155,511.56 from the previous close of 148,743.31. The market fluctuated between an intraday low of 151,262.76 points at opening and surged by 8,603.86 points to reach an intraday high of 157,347.17 at 1:13pm. AKD Securities Ltd said the KSE-100 was eyeing recovery on “rising hopes of Middle East de-escalation”. “KSE-100 index is expected to rebound after recording its worst monthly performance in March 26 in the past six years, as the likelihood of de-escalation in the Middle East conflict increases,” it noted. Arif Habib Ltd highlighted China and Pakistan’s joint call for an immediate ceasefire in the Iran war, noting that “additional news flow has also been positive with regards to de-escalation”. “Further positive news flow will drive...

China’s Foreign Minister Wang Yi has conveyed Beijing’s appreciation for Pakistan’s “active diplomatic role” and efforts towards ending the Middle East conflict, the Foreign Office (FO) said on Wednesday. Wang made the remarks during his meeting with Deputy Prime Minister and Foreign Minister Ishaq Dar in Beijing on Tuesday, where the two sides had issued a five-point initiative for restoring peace in the Middle East. Referring to their discussions, the FO said in a statement, “The meeting was marked by traditional warmth and cordiality. Both dignitaries exchanged notes on the regional developments in West Asia as well as bilateral relations.” Dar briefed Wang in detail on Pakistan’s continued efforts towards the cessation of the Middle East conflict and resumption of dialogue, including its recent quadrilateral meeting in Islamabad with the foreign ministers of Saudi Arabia, Turkiye and Egypt. According to the FO, both sides “reviewed the regional security environment and expressed deep concern over its seri...

Pakistan and China on Tuesday issued a five-point initiative for restoring peace and stability in the Gulf and the Middle East amid the US-Israeli war on Iran, in which they called on the immediate cessation of hostilities and starting peace talks as soon as possible. The development came as Deputy Prime Minister and Foreign Minister Ishaq Dar undertook a one-day visit to Beijing at the invitation of China’s Foreign Minister Wang Yi, for “in-depth discussions on regional developments”, according to the Foreign Office (FO). In a statement released after the meeting, the FO said the two reviewed the situation in the Gulf and Middle East region and put forward five points. Both countries called for the “immediate cessation of hostilities and utmost efforts to prevent the conflict from spreading”. Humanitarian assistance must be allowed to all war-affected areas, the statement said. The two countries also called for starting peace talks as soon as possible. “Sovereignty, territorial integrity, national independen...

Iran’s blockade of the Strait of Hormuz trade route in the Middle East war is driving up the costs of shipping fuel and goods around the world, industry data shows. Prices have risen because of falling capacity, with ships staying put in the Gulf for fear of attack if they set sail. Other ships are taking long, costly alternative routes to avoid the strait — while the reduction of oil flows has raised the price of boats’ fuel. “We’ve had to stop bookings … from and to the upper Gulf region because we can’t get the ships in nor out,” said Rolf Habben Jansen, chief executive of major container shipping line Hapag-Lloyd last week, estimating the war had driven up costs by “$40, 50 million per week”. “A big chunk of that is bunker fuel prices, but also in categories like insurance or container storage and inland transportation, we have seen costs go up, and we have six ships that we cannot use today, which reduces the available capacity,” he told a news conference. Here are five data indicators of how the crisis ...

Flight operations across Pakistan faced major disruption on Tuesday, with 62 flights cancelled due to the escalating crisis in the Middle East.

Pakistan has stepped up its diplomatic efforts to help ease tensions in the Middle East, as foreign ministers from key regional countries gather in Islamabad for high-level discussions.