As a reminder Pakistan is doubly exposed to the Middle East, both via heavy fuel import needs as well as enormous worker remittances. Last year both trends were moving in Pakistan's favor, with oil prices remaining low and remittance incomes exploding upwards, supporting a significant economic recovery at home as well as strong performance across all asset classes.

If the war persists and expands in the region, however, all bets are off. Remittances could contract sharply even as the oil import bill widens out - with negative implications for the currency, equities and growth.