Page 21 - CMA Journal (Mar-Apr 2026)

It is reported that about 50% of sun ower oil production was any price due to no income; second, the people who cannot
from only Ukraine before this war. This war also disturbed the afford food after the price increase due to this war; third, the
food supplies globally as well as inside both countries. As a people who do not have access to food in this situation; and
result, food prices increased sharply, agricultural land was fourth, the people who will be pushed in hunger line
destroyed, labor shortages emerged, and crop production between this situation and post this situation.
declined. The Russia is a major supplier of fertilizers and
natural gas, which was disrupted and ultimately caused the According to International Monetary Fund (IMF) 2022, if 10% oil
food and energy crisis. prices increase, food supply prices will go up by 2%. So, we can
estimate how difficult a situation can occur in near future for the
people of Pakistan as well as whole world. Oil prices impact food
prices because oil is an input for agriculture production such as
diesel for tractor, tube well, and transportation.

Pakistan imports major fertilizer raw materials from the
Middle East, especially DAP from Saudi Arabia, Morocco &
Qatar. If there is shortage of fertilizer for upcoming crops,
production will signi cantly reduce and result in a shortage
of foods in the country. The shortage of oil, gas, and fertilizers
Sources: https://tradingeconomics.com/world/food-price-index; https://tradingeconomics.com/commodity/crude-oil
will create in ationary pressure on food prices. Ultimately, a
The Middle East war has disturbed all major factors of food humanitarian crisis in Pakistan as well as in the world is
security because it impacts availability, accessibility, imminent due to food shortage or high-priced foods. Low-
income population in Pakistan may affect signi cantly
utilization, and stability of foods in the whole world
because Pakistan already facing economic challenges due to
especially in Asia and Africa. This is an ongoing crisis and has
majorly high business costs, energy crisis and recent exit of
caused a series of crises over the last 5-6 years which have
multinational companies from Pakistan due to higher taxes.
badly impacted the world economy and food security. This
war has also had an impact far beyond its region, affecting World Food Program warns that if war continues, an
additional 45 million people will fall under major food
the whole world.
insecurity, in which Asian countries are at top (Source: World
Iran has blocked the Strait of Hormuz, through which a Food Program, 24th March 2026).
signi cant portion of oil and gas is transited. Due to the
blockage of the Strait of Hormuz, the supply of oil and gas to
the world declined. The price of oil sharply increased to more
than $100 within a month which was around $65 before this
war. Oil prices exceeded $100 in 2008, 2011, and 2022, which
badly impacted food prices.
The Middle East war has disturbed all major factors of food
security because it impacts availability, accessibility,
utilization, and stability of foods in the whole world
especially in Asia and Africa. This is an ongoing crisis and has
caused a series of crises over the last 5-6 years which have
badly impacted the world economy and food security. This
war has also had an impact far beyond its region, affecting
The most important factor of food security is affordability
the whole world.
because even if food is available in the market in sufficient
Iran has blocked the Strait of Hormuz, through which a quantity but most of the population cannot afford it at high
signi cant portion of oil and gas is transited. Due to the prices. In ation backed by high energy costs can lead to a
blockage of the Strait of Hormuz, the supply of oil and gas to reduction in real income of major population who spend
the world declined. The price of oil sharply increased to more most of their earnings on food. Mainly, labor, farmer,
than $100 within a month which was around $65 before this homeless people are major victims of this global shock. It will
war. Oil prices exceeded $100 in 2008, 2011, and 2022, which ultimately increase social stress, malnutrition, and health
badly impacted food prices. issues.
Supply chains will be disturbed due to this war, because
Due to the increase in prices of oil and gas, the production
Pakistan imports its oil, LPG, LNG, and fertilizers from Gulf
cost of food increased sharply in the world. When this price countries, which is creating delays in shipment. Because of
hike transfers to consumer, low-income people cannot
afford food at high prices. It can be divided into four this delay, there will be shortage of these goods in market
categories; rst, the people who are unable to buy food at and panic buying is expected to start in near future. It will
create a more problematic situation for food supply and

19 ICMA’s Chartered Management Accountant, Mar-Apr 2026