New Delhi, March 30 (NationPress) The ongoing crisis in the Middle East presents a significant threat to Bangladesh, Pakistan, and Sri Lanka, particularly due to their heavy reliance on imported energy and limited stockpiles, as highlighted in a report by S&P Global Ratings.

These nations are especially susceptible to spikes in oil prices and the possibility of supply interruptions. A drawn-out shock in global energy prices could adversely affect their sovereign credit ratings, the report indicates.

S&P Global Ratings, known for its analyst-driven credit ratings, research, and sustainable finance insights, notes that such analyses are critical for guiding market players in making informed decisions amidst complexity.

While Pakistan, Sri Lanka, and Bangladesh are displaying signs of economic recovery, ongoing elevated energy costs and potential disruptions to trade and remittances could threaten their delicate economies, according to the report.

It also mentions that Laos has a comparatively lower vulnerability owing to its dependence on hydropower and a more stable fiscal framework. Although it remains at risk from prolonged energy price fluctuations, the factors supporting its long-term positive ratings outlook are currently intact.

"Our ratings for Bangladesh are expected to endure short-term economic disruptions associated with our base-case scenario," stated the credit rating agency.

Nonetheless, the nation faces increasing challenges to growth, inflation, and its external financial balance if energy prices continue to rise longer than expected.

Surging fuel costs are likely to hinder the gradual decrease in inflation over the next three to six months, potentially weakening the economic recovery.

The report emphasizes that Bangladesh's economy is heavily dependent on imports for both crude and refined oil, with reserves projected to last for less than a month. If imports remain restricted, stricter measures to reduce consumption may need to be enacted.

Approximately 50% of Bangladesh's electricity generation is sourced from gas, and nearly a quarter of its gas demand is satisfied through imports, which could also face disruptions in the event of an extended conflict in West Asia.

Currently, the nation is contending with persistently high inflation, which increased to 9.2% in February from 8.6% in January, coupled with a prolonged growth slowdown following the collapse of the previous government in mid-2024.

Bangladesh's revenue-to-GDP ratio ranks among the lowest of all rated sovereigns, estimated at around 9% for the current fiscal year concluding in June 2026.

The ongoing war also serves as an unwelcome obstacle to Bangladesh's improving external balance. As of March 12, 2026, foreign exchange reserves rose to $29.6 billion, a substantial increase from $19.7 billion during the same time frame in 2025, as reported.