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Pakistan Oil Crisis Deepens as Strait of Hormuz Blockade Hits Economy

New York Times Business •
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Pakistan faces a deepening economic crisis as soaring oil prices, triggered by attacks on shipping in the Strait of Hormuz, squeeze families and farmers just before the Eid holiday and harvest season.

The country imports over 85% of its crude oil through the Persian Gulf, a route now effectively blocked by conflict. To curb hoarding, the government raised fuel prices by 20% on March 6th, the highest increase since the U.S.-Israeli strikes on Iran. This sudden surge has forced farmers to abandon tractors and rely on manual labor, raising cultivation costs. Daily wage workers, including rickshaw drivers and laborers, face similar hardships as their transport and living costs skyrocket.

Economists warn this disruption could destabilize Pakistan's already fragile economy, heavily reliant on oil imports and remittances. The government is seeking alternative supplies from Saudi Arabia via the Red Sea and exploring domestic solar energy to offset liquefied natural gas shortages. However, farmers and workers fear these measures come too late. Ali Akbar, a real estate employee, plans to cut Eid travel and move his children to a cheaper school, highlighting the human cost. The Eid shopping season, usually a key retail period, is already muted as consumers prioritize essentials.

Pakistan walks a diplomatic tightrope, balancing relations with Gulf states and Iran while avoiding condemnation of U.S. actions. The crisis underscores the vulnerability of economies dependent on single energy routes and the immediate human toll of geopolitical conflict.