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Middle East conflict: SBP says uncertainty may hurt financial stability prospects
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Middle East conflict: SBP says uncertainty may hurt financial stability prospects
The State Bank of Pakistan (SBP) has warned that ongoing uncertainty due to the Middle East conflict could create downside risks for Pakistan’s financial stability, potentially driving inflation, putting pressure on the external account, and hindering economic growth. In its 2025 Financial Stability Review (FSR), the SBP stated that although recent macroeconomic stability offers a positive outlook, uncertainty surrounding the Middle East conflic…
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