Pakistan Implements Emergency Measures
On March 10, 2026, Pakistan announced sweeping emergency austerity and fuel conservation measures in response to significant disruptions in oil and gas supply caused by the ongoing Iran war. The conflict has severely impacted the Strait of Hormuz, a vital waterway for traded oil, exacerbating the energy crisis in the region.
Pakistan, which relies on imports for over 80 percent of its oil needs, has seen its oil imports reach $10.71 billion from July 2025 to February 2026. The recent disruptions have triggered the largest fuel price increase in the country’s history, with petrol now costing $1.15 per litre and diesel at $1.20 per litre, marking a 20 percent increase since the previous week.
Impact on Households and Economy
The fuel crisis has emerged during the final days of Ramadan, putting additional strain on household budgets. Prime Minister Shehbaz Sharif remarked, “The entire region is currently in a state of war,” highlighting the broader implications of the conflict.
Amer Zafar Durrani, an energy expert, noted that transport dominates petroleum consumption in Pakistan, further complicating the situation. He emphasized that while rising oil prices pose a risk, the real macroeconomic trigger could be currency depreciation, which could have more profound effects on the economy.
International Context and Reactions
As the situation unfolds, the United States has intensified its military operations against Iran, with Defense Secretary Pete Hegseth stating, “Today will be yet again our most intense day of strikes inside Iran.” This escalation aims to destroy Iran’s missile capabilities and defense industrial base.
Qatar remains Pakistan’s primary LNG supplier, and its cargoes also transit through the Strait of Hormuz, further linking the regional conflict to Pakistan’s energy security. The ongoing conflict in the Middle East continues to have significant implications for global oil supply and prices.
Details remain unconfirmed regarding the full extent of the disruptions and their long-term impacts on Pakistan’s economy and energy policy.
