RUSSIA-UKRAINE WAR ECONOMIC IMPACT ON PAKISTAN

Abstract

The Russia-Ukraine war has significantly reshaped global economic dynamics, with far-reaching consequences for developing countries like Pakistan. This conflict has disrupted international supply chains, exacerbated inflationary pressures, and impacted energy security due to heightened volatility in global energy markets. As a major importer of oil, Pakistan has faced increased import bills, leading to a widened trade deficit and further depreciation of the Pakistani Rupee. The surge in commodity prices, particularly wheat and fertilizers—key imports from the region—has compounded domestic inflation and created food security challenges for the country. Additionally, geopolitical realignments have strained bilateral relations and trade routes, limiting Pakistan’s access to alternative energy sources and creating long-term economic vulnerabilities. The war has also influenced Pakistan’s export potential due to reduced demand in conflict-affected European markets and the redirection of global investments to safer economic zones. While some opportunities have emerged, such as increasing trade with Central Asian states, they remain underexplored due to infrastructural and policy challenges. This paper critically examines the direct and indirect economic impacts of the Russia-Ukraine war on Pakistan, exploring energy, trade, and food security dimensions. It also highlights strategies for mitigating these challenges through enhanced regional cooperation, diversification of trade partners, and improved energy policies. The study underscores the importance of adaptive economic strategies to navigate the evolving global geopolitical landscape.

Keywords: Russia-Ukraine War, Pakistan Economy, Energy Security, Trade Deficit