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Pakistan is defying some long-held investing myths

Islamabad’s unlikely role as a broker of peace in the Gulf has put it back on institutional investors’ radar

    • The energy shock from the Strait of Hormuz's closure has not led to a collapse of Pakistan's public finances. There is no currency crisis, either.
    • The energy shock from the Strait of Hormuz's closure has not led to a collapse of Pakistan's public finances. There is no currency crisis, either. PHOTO: REUTERS
    Published Wed, May 27, 2026 · 07:00 AM

    AS THE Iran war drags on, emerging markets powerhouses are reeling from the closure of the Strait of Hormuz, one of the oil trade’s most important routes.

    Turkey’s foreign reserves are depleting at record pace, India is considering all options as the rupee plunges to record lows and Indonesia delivered a jumbo interest rate hike to defend its currency.

    If these heavyweights are struggling, what chances are there for smaller nations?