Macro EconomyMedium•19 October 2026•
1 min read
Pakistan GDP Growth Slows to 2.0% Amid Energy Crisis and Hormuz Disruptions
Key Facts
1Pakistan's GDP grew by 2.0% in the quarter ended June, falling significantly below analyst estimates.
2The Strait of Hormuz crisis and LNG supply disruptions from Qatar led to soaring energy prices and industrial slowdown.
Pakistan's GDP grew by 2.0% in the quarter ended June 2026, falling significantly below analyst estimates. Oilprice.com reported that the Strait of Hormuz crisis and LNG supply disruptions from Qatar led to soaring energy prices and industrial slowdowns.
The ongoing disruptions in the Strait of Hormuz forced the country into expensive spot purchases of gas, causing the industrial sector to contract by 4.7% in the fourth quarter of fiscal year 2026. This energy shock is impacting the country's IMF-backed recovery as import costs rise and budget frameworks face increased pressure.