Global energy price shocks, such as those triggered by regional conflicts, can cascade through domestic economies, significantly increasing transportation and living costs and dampening consumer spending during important cultural celebrations like Eid.
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Fuel crisis tones down Eid celebrations in Pakistan追加:
Muhammad Shaheen walks through a crowded cattle market searching for an affordable sacrificial animal. But like many Pakistanis this he is struggling to keep up with the sharp increase in prices.
Compared to last year, the prices of sacrificial animals have doubled. I'm worried. This is beyond my budget. Since the Iran US conflict began, fuel prices in Pakistan have risen by nearly 70% triggering a chain reaction across the economy.
This time there is a decline in the purchase of animals. The reason is the increase in diesel prices. Due to the rise in fuel prices, our transportation costs have gone up.
>> The impact is visible not only in cattle markets but also in Eid travel plans.
Usually we celebrate 8 in our village area but this time we will celebrate here because we cannot afford it due to the increase in petrol prices.
>> The fuel prices hike has also hit public transport businesses. The usual hustle and bustle is missing in these bus stands ahead of Eid.
This time the rush at the bus stand is very low. Passengers come hear the fair and then leave. People are very worried.
The government meanwhile insists it is trying to shield consumers from the global fuel shock triggered by the regional conflict. But for many Pakistanis, relief remains out of reach.
Markets in Pakistan's big and small cities are usually packed with shoppers ahead of feed. But this year, traders complain that customers are not spending enough and businesses are suffering.
Here in Pakistan, the Iran US war is no longer a distant conflict. From cattle markets to bus stations, its economic impact is now being felt at home, slowing business activity at a time when the country can least afford another financial shock. Kaman Yusf, TRT World, Islamabad.
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