May 29, 2026

S&P Macroeconomic Risk Warning: Pakistan Flagged as Most Exposed APAC Country to Middle East War

ISLAMABAD / KARACHI — A grueling report by S&P Global Market Intelligence has flagged Pakistan as the Asia-Pacific (APAC) economy most vulnerable to severe macroeconomic stress if conflicts in the Middle East persist. Due to a heavy dependence on imported energy and regional industrial inputs, a prolonged shock could choke domestic manufacturing and strain fiscal buffers. While S&P projects a 3.2% GDP growth for FY2027, it warns that supply chain bottlenecks could spike global oil prices and pressure Pakistan’s external financing.

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