Pakistan in July 2026: the most important developments in economy
In July 2026 Pakistan's economy was dominated by energy supply problems linked to the Gulf war. On July 9 the International Monetary Fund lowered its 2026 global growth forecast amid risks in the Middle East, and the same day Pakistan scrambled for emergency liquefied natural gas after a Qatari cargo was cancelled and attacks in the Strait of Hormuz disrupted shipping. By mid-month Pakistan was paying its highest spot LNG price in four years, and on July 21 it was paying record sums as Qatari supply faltered. The IMF warned that dwindling fuel reserves leave energy markets exposed to new shocks in the Middle East. Pakistan looked for alternatives: officials called the Iran-Pakistan rail link a strategic regional game changer, state-owned Pakistan State Oil is set to become the sole diesel importer by 2027, and Pakistan plans to start horizontal drilling for shale gas in September. The Gulf war was also reported to have led to an outflow of investment from Pakistan.
The second story of the month was the wreckage of a cargo plane of Pakistan's K2 Airways, found off the coast on July 8 with more debris found later. Five crew members remained missing, and victims' families pushed for international help in finding the black boxes.
Financing and trade news was more positive. The World Bank approved $375.9 million to strengthen Pakistan's power transmission network on July 10, and on July 22 Fitch upgraded Pakistan to B with a stable outlook, citing improved institutional and fiscal settings. The US treasury secretary welcomed Pakistan's economic reforms and return to capital markets, while one report questioned whether a $10 billion US loan can still be secured. Prime Minister Shehbaz Sharif hailed $440 million in pharmaceutical deals with China. The European Union noted issues in Pakistan's compliance with its GSP+ trade scheme and urged it to address shortcomings.
by WorldBrief & Maksim Micheliov | AI-generated summary
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