Pakistan's economy showed unexpected resilience with GDP accelerating to 3.89% in the three months ended December, up from 1.73% a year earlier. The growth occurred despite the Middle East conflict's impact on fuel imports, which Pakistan heavily relies on. This performance came before the full effects of regional tensions were felt.

The economy remains vulnerable with uneven growth patterns and persistent inflation concerns. The central bank maintained interest rates unchanged amid rising prices, with inflation hitting 7.3% in March as fuel costs escalated. Pakistan continues to depend on International Monetary Fund support, with a $1.2 billion loan disbursement approved recently.

Regional conflict now clouds Pakistan's economic outlook, with volatile energy prices threatening to push inflation higher and weigh on growth. Exports have fallen to an eleven-month low, while fuel consumption still rose 10% in March despite conservation measures. The government spent 129 billion rupees ($462 million) subsidizing fuel, an unsustainable approach according to officials.