IMF says Pakistan to face limited fertilizer impact from Middle East conflict

Pakistan is expected to be affected by the ongoing Middle East conflict through global price transmission, but the impact on the fertilizer sector is likely to remain limited due to sufficient domestic stocks and increased production capacity, an International Monetary Fund (IMF) official said.

Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, said the effects of the conflict would be similar to other economies, though fertilizer supplies in Pakistan remain relatively stable.

He said Pakistan’s IMF programme is progressing, with a staff-level agreement reached and the IMF Board expected to consider approval of the next tranche.

The official noted that several countries have adopted fiscal measures to mitigate the impact of external shocks, using targeted support to protect vulnerable segments.

He added that existing IMF programmes for Pakistan, Jordan and Egypt are designed to help these economies absorb shocks and reduce vulnerabilities.