Pakistan's economy has faced a growth of 2.0 percent in the final quarter of the fiscal year 2026, reflecting the negative impacts of the energy crisis and rising global prices. This growth is significantly lower than the 4.42 percent observed in the first quarter of the fiscal year 2026 and also below analysts' forecast of 3.5 percent.
Impact of the Energy Crisis on Industry and Economic Growth
According to official data from the Pakistan Bureau of Statistics, economic growth in the quarter ending June 2023 was severely affected by rising energy costs and the lack of continuous LNG supply from Qatar. During this period, Pakistan's industry faced a decline of 4.7 percent, while the agricultural and services sectors experienced growth of over 3.5 percent, respectively. This significant decline in industry indicates the pressures arising from the energy crisis in the country.
Read more: Decrease in Marine Gasoline Sales in Singapore in September
Challenges in Securing Natural Gas and High Import Costs
Pakistan is currently facing serious challenges in securing natural gas. With severe disruptions in LNG supply from the Strait of Hormuz, the country has been forced to turn to expensive purchases from spot markets. This has led to increased electricity production costs and potentially raised import bills to over 1 billion dollars for LNG supply in the coming months. Last year, Pakistan sourced 99 percent of its LNG imports from Qatar under long-term contracts.
With the ongoing crisis in the Strait of Hormuz and rising energy costs, Pakistan is facing a challenging winter, which could lead to serious problems in energy supply for industries and households. According to Pakistani officials, this situation could put further pressure on the country's budget and economic development programs.
Read more: Cost of Transporting U.S. Crude Oil to Japan Reaches 81 Million Dollars · Falling Natural Gas Futures Prices in the U.S. Despite Rising Demand
