Iran–US Tensions Begin Impacting Pakistan’s Economy, Warns LCCI President

By Farzana Chaudhry | Lahore, Pakistan
LAHORE: President of the Lahore Chamber of Commerce and Industry, Faheem Ur Rehman Saigol, has warned that escalating tensions and a war-like situation between Iran and the United States are beginning to adversely affect Pakistan’s economy.
Speaking to media representatives at the Lahore Chamber, he said disruptions in the supply of oil and raw materials due to regional instability are driving up production and transportation costs, placing increasing pressure on businesses and consumers alike.
He cautioned that if the conflict persists, Pakistan could face a significant rise in inflation and unemployment. “Industrialists, traders, and the general public are already experiencing the impact,” he noted, urging the government to take all stakeholders on board when making economic decisions to mitigate further damage.
Saigol emphasized the importance of maintaining strategic reserves, stating that if Pakistan had ensured at least a 28-day stockpile of essential commodities, the surge in prices could have been better controlled. He also pointed out that rising inflation dampened consumer spending during Eid, negatively affecting business activity.
The LCCI president said the business community has begun taking practical steps to conserve energy, including promoting efficient use of electricity, gas, and fuel across industries and commercial sectors. He reaffirmed the Chamber’s support for the government’s austerity measures aimed at stabilizing the economy.
Highlighting broader concerns, Saigol stressed that eliminating terrorism remains critical for sustainable economic growth, noting that peace is a prerequisite for stability. He warned that a prolonged conflict between Iran and the United States would not serve the interests of any country in the region and could have far-reaching economic consequences.
He urged the international community to take immediate steps to de-escalate tensions and prevent further disruption to regional and global economies.