Pakistan Finance Minister warns of Gulf energy infrastructure risks

Pakistan Finance Minister Muhammad Aurangzeb has expressed concern that continued attacks on energy infrastructure in Saudi Arabia and the Gulf region could jeopardize Pakistan’s long-term economic outlook. Speaking at the IMF-World Bank Annual Meetings in Bangkok, Aurangzeb noted that while Pakistan has successfully managed initial energy price shocks caused by the conflict involving Iran, physical damage to regional energy sites could delay a return to economic normalcy.

To maintain stability, Pakistan has secured energy supplies through November and is planning for winter demand. The government intends to avoid expensive spot LNG purchases unless an absolute emergency arises. On the fiscal front, Aurangzeb reported that Pakistan’s public debt has declined to 68% of GDP and the fiscal deficit has dropped to 2.6%, supported by three consecutive years of primary surpluses and a 40% increase in tax revenues over two years.

Addressing broader economic strategies, the minister highlighted a shift from foreign aid toward trade and investment partnerships with China, the United States, and Gulf nations. He also acknowledged the country’s poverty challenges following a World Bank report and urged Canada to advance an investment protection agreement to bolster bilateral commercial ties.