Business

‘Russia-Ukraine war reshaping world trade’

Written by The Frontier Post

ISLAMABAD (APP): Russia-Ukraine war is reshaping world trade and investment that will also affect Pakistan in the prevailing global scenario.
Talking to a delegation of Business Think Tank led by M. Azam Khan, Coordinator to Federal Tax Ombudsman and former Senior Vice President Lahore Chambers of LCCI, Meher Kashif Younis said with no signs of an early end to the war in Ukraine, the risk is growing that conflict will tip a fragile global economy into recession.
He said in February last, the crisis between Russia-Ukraine escalated, the global economy was beginning to recover from Covid after recording worst economic performance since the great recession. He said the current outlook for the global economy now seems bleak and South Asia will also affected equally.
He said rising inflation has outpaced the recovery in the real economy, adding that disruption in supply chains and rising petroleum prices before Russia’s invasion caused challenges in managing global inflation and growth.
He said that Russia and Ukraine combined have a significant share of global supplies of oil, gas and other commodities so that the conflict resulted into increased commodity prices.
Spaking on the occasion, Chief Executive Officer of Pakistan Furniture Council Meher Kashif said current global crisis apart from rich countries, will also impact the South Asia region as well and its economic activities will decline as inflation is being driven up further by soaring prices of food and fuel brought by Russia-Ukraine war.
He said Pakistan should be ready to brave the consequences well on time to offset the impending hovering threat or at least manage to bear minimum possible aftershocks of the conflict.
He said leading world economists and marco economics experts predicted the signs of recession looming on the horizon are likely to happen in 2023 with a significant decline in economic activities even in the United States and other countries followed by layoffs in multiple industries.

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