Zahid Hussain highlights economic perils amid Middle East war, calls for urgent mitigation

Karachi
Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, and Former Provincial Minister Information Technology, has expressed grave concern over the escalating US-Israel-Iran war, warning that the disruption of the global energy supply chain is pushing the world toward a historic economic meltdown.
In a statement issued today, he noted that the 2026 Iran War, which commenced on February 28, has fundamentally altered the geopolitical landscape, leaving Pakistan and other energy-dependent nations in a state of high vulnerability. He emphasized that the closure of the Strait of Hormuz on March 4 has paralyzed nearly 20 percent of the world’s oil and liquefied natural gas (LNG) trade, describing it as the most severe supply disruption since the 1970s.
Mian Zahid Hussain pointed out that Brent crude oil prices, which surged past $120 per barrel earlier this month, remain highly volatile despite a slight easing to $103 following President Trump’s recent diplomatic maneuvers.
He remarked that the ongoing blockade of the Strait has forced regional giants like Saudi Arabia, Kuwait, and the UAE to cut production by over 10 million barrels per day, creating a “greatest global energy and food security challenge” as declared by the International Energy Agency. He warned that if the conflict persists, Qatar and Kuwait could see a GDP contraction of up to 14 percent, which would directly impact millions of Pakistani expatriates and the $21 billion annual remittance flow from GCC that largely supports Pakistan’s current account deficit.
Regarding the latest diplomatic developments, Mian Zahid Hussain observed that President Trump’s announcement of “productive talks” and the five-day postponement of strikes on Iranian power plants has provided a temporary breather to global markets. However, he cautioned that the situation remains fragile as Tehran continues to deny formal negotiations while demanding compensation for civilian infrastructure damage.
He noted that the threat of sea mines in the Persian Gulf, the declaration of force majeure by QatarEnergy, insurance and freight charges have already driven up fertilizer prices by 40 percent and gas benchmarks by 55 percent, threatening global agricultural output and food security.
Analyzing the impact on the domestic front, Mian Zahid Hussain stated that Pakistan is facing an “overnight surge” in fuel and grocery prices, leading to the implementation of emergency measures such as a four-day work week and school closures to conserve energy.
He stressed that the disruption of 30 percent of global fertilizer exports through the Gulf is particularly lethal for Pakistan’s agrarian economy. He urged the government to diversify energy sources and strengthen diplomatic efforts to ensure the safety of Pakistani workers in the Gulf, who are currently facing an “end of the narrative” regarding the region’s status as a safe haven for global talent.