Pakistan in March 2026: the most important developments in economy
Pakistan's economy in March 2026 was dominated by the war involving Iran and the closure of the Strait of Hormuz, and by the International Monetary Fund's warnings about its global effects. IMF Managing Director Kristalina Georgieva said the conflict was affecting trade routes, energy prices and regional economies, and that the world's economic resilience was being "tested yet again." On March 30 the IMF warned that the conflict was dimming the global outlook, with an energy shock, disrupted trade and tighter financial conditions, and that many countries should expect higher prices and slower growth.
For Pakistan the main issue was fuel. On March 2 the stock market fell sharply and trading was halted, and more than 500 flights were cancelled. Reserves stood at 28 days of fuel on March 5 and 26 days a day later. Pakistan cut gas supplies to some industrial buyers, including fertilizer producers, and asked Saudi Arabia for an alternative oil supply route. The government raised the petrol price by 55 rupees per litre, the steepest increase ever, and on March 10 announced a "war austerity plan" with school closures and a four-day work week. That week tankers arrived at Port Qasim, and by March 24 the finance ministry said petrol cargoes for March and April were largely secured. Pakistan arranged for its ships to carry diesel and jet fuel from Kuwait through the strait, and Press TV reported a deal with Iran to send 20 ships through it. Prime Minister Shehbaz Sharif said the government was taking steps to ease the burden on lower- and middle-income households.
Pakistan's dealings with the IMF continued. Talks with an IMF mission moved to a virtual format, and discussions on a $1 billion tranche remained inconclusive on March 12. The government tested the IMF's austerity demands with a mini-budget, and the IMF set a tax revenue target of 15.6 trillion rupees. The Asian Development Bank said it would provide $10 billion in financing under a new five-year partnership strategy.
by WorldBrief & Maksim Micheliov | AI-generated summary
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