The escalating conflict in Iran is inflicting severe damage on Pakistan’s economy, especially its energy sector. Imports of liquefied natural gas (LNG) from Iran — a critical supply for Pakistan’s power plants and industries — have been severely disrupted.
The war has not only damaged Iran’s energy infrastructure but also made maritime transport routes dangerous. As a result, LNG shipments from Iran to Pakistan have been delayed or cancelled, pushing the already energy-stressed South Asian nation into a full-blown crisis.
The LNG shortage has forced Pakistan’s government to impose widespread rotating power cuts, affecting the daily lives of millions and hampering industrial and commercial activity. Fertilizer, chemical and steel plants are operating at reduced capacity due to gas shortages.
Energy experts say this crisis underscores Pakistan’s over-reliance on fuel imports from a country mired in conflict. Diversifying supply sources and accelerating domestic renewable energy and hydropower projects has become more urgent than ever to reduce future risk.
Pakistan’s government says it is seeking alternative LNG supplies from Qatar, the United States and Gulf nations, but transport times and costs will be significantly higher. Electricity and gas prices in Pakistan are expected to rise sharply in the coming months, adding to the country’s inflationary burden.
