Pakistan has been listed among the world’s ten most severe hunger hotspots in the Global Report on Food Crises 2026, facing a dangerous convergence of climate shocks, economic fragility, and rising inflation. The country is grappling with surging fuel prices exacerbated by the Middle East conflict, adding pressure to an already strained system, as per a report from Maldives Insight.
The Human Rights Council of Pakistan has raised concerns, labeling the fuel price surge as an “economic suicide attack” that is expected to trigger a fresh wave of inflation. The report highlighted that nearly 11 million people in Pakistan experienced high levels of acute food insecurity in 2025, with a significant portion categorized in “crisis” and “emergency” conditions.
In addition to climate extremes, the country is also facing inflation projected to increase to around 6%, leading to a decline in purchasing power and restricted access to affordable food. This situation has created a feedback loop where economic stress worsens food insecurity, further deepening economic hardships, according to the report.
Heavy monsoon rains and flash floods in 2025 impacted over 6 million people in Pakistan, resulting in crop destruction, infrastructure damage, and disruptions in distribution networks. The report emphasized that extreme weather events have introduced unpredictability into agricultural cycles, complicating planning and recovery efforts.
Analysts have warned that a fuel price shock could negatively impact Pakistan’s current-account balance by about 0.3 percentage points of GDP and the fiscal balance by about 0.1 percentage points. Based on the country’s nominal GDP in FY25, experts estimated that sustained oil prices near $100 per barrel could lead to significant stress on the current account and fiscal balance, potentially spilling over into FY27 if prices remain elevated.
