Pakistan : Oil prices pose challenge to outlook

Soaring oil costs are already having a large impact on the Pakistani economy. Rising fuel prices, and food costs, have driven inflation to a six-year high while the current account has slumped. Gill James, Standard Chartered’s Chief South Asia Economist assesses the impact and the outlook for future growth

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Things are not looking so good for our new ally…

“After two years of strong growth, low inflation, and strengthening fiscal and external accounts the Pakistan economy faces a number of challenges. Inflation is at a six-year high, the trade deficit has trebled, the current account surplus has more than halved. The current major threat to the outlook is high global oil prices…”

Also note the reference to grain…(“peak grain” per Laherrere…)