Finance Minister Muhammad Aurangzeb has warned that attacks on energy infrastructure in Saudi Arabia and other Gulf countries could create additional risks for Pakistan’s economic outlook, even as the country has so far managed the immediate effects of rising international energy prices. Speaking to Agence France-Presse on the sidelines of the International Monetary Fund (IMF) and World Bank annual meetings in Bangkok, Aurangzeb said Pakistan had secured sufficient energy supplies to meet its requirements through November 2026 and was now planning for the winter months, when household demand typically increases.
The finance minister said Pakistan had managed the immediate impact of the energy price shock without experiencing fuel shortages, queues at petrol stations or related law and order problems. He described the government’s handling of the initial pressure as effective but cautioned that damage to energy infrastructure could complicate the outlook. According to Aurangzeb, continued attacks on energy facilities could delay a return to normal economic conditions even if the regional conflict begins to subside.
Pakistan’s energy planning has become more challenging amid higher global prices and uncertainty surrounding oil and gas supplies. Aurangzeb said the government would avoid purchasing liquefied natural gas (LNG) through the spot market unless there was an urgent need. Spot cargoes can be significantly more expensive than shipments secured through existing contracts, potentially increasing the cost of meeting domestic energy demand. The approach reflects an effort to manage procurement costs while maintaining adequate supplies for households and businesses.
The regional situation has added to these concerns. The conflict involving Iran and the United States and its allies has disrupted energy markets, while attacks affecting Gulf infrastructure have raised questions about the reliability of supply routes and facilities. The report also highlighted renewed fighting involving Yemen’s Houthi movement and attacks on Saudi infrastructure, including energy facilities and airports. Aurangzeb warned that damage to such assets could have consequences extending beyond the immediate period of hostilities, particularly if repairs and restoration take considerable time.
The finance minister said Pakistan’s ongoing fiscal consolidation efforts had helped the country manage external economic pressures. Fiscal consolidation involves measures intended to improve public finances, control deficits and strengthen the government’s ability to respond to economic shocks. However, he acknowledged that further work was needed to improve tax collection. The government is targeting businesses that collect sales tax from consumers but fail to deposit the money into public accounts, a practice Aurangzeb said results in losses worth billions of dollars.
He also identified scope for improvement in income tax collection and said the government’s reform programme had faced resistance from industry groups, lobbyists and other interests opposed to changes in existing arrangements. The administration is seeking to broaden revenue collection and strengthen compliance as part of efforts to improve the country’s fiscal position. These measures are intended to support economic stability, although implementing them requires changes to established business practices and effective enforcement.
During the IMF-World Bank meetings in Bangkok, Aurangzeb also met Jihad Azour, director of the IMF’s Middle East and Central Asia Department, to discuss Pakistan’s economic performance and reform progress. According to the Ministry of Finance, the discussions covered revenue collection, inflation, economic growth and the current account. The ministry said both sides reviewed Pakistan’s resilience amid regional conflict and discussed the importance of continuing economic reforms.
Energy procurement and preparations for winter were also part of the government’s discussions, alongside the availability of fertiliser supplies to protect food security. Maintaining adequate fertiliser stocks is important for agricultural production, while reliable energy supplies support households, industry and commercial activity. The government’s preparations therefore extend beyond fuel availability to include resources needed to sustain economic activity and essential domestic requirements during the winter period.
The Ministry of Finance also highlighted developments involving foreign exchange reserves, reduced forward foreign exchange liabilities, longer debt maturities and lower external repayment requirements. These areas are important to Pakistan’s ability to manage external financing needs and limit pressure on its balance of payments. Aurangzeb reaffirmed the government’s commitment to maintaining primary budget surpluses, reducing public debt and pursuing tax reforms designed to support growth while protecting social spending.
The discussions also addressed privatisation, increased private-sector participation and export-oriented growth. Expanding exports can help generate foreign exchange, while greater private investment may support productive capacity and employment. The government views these measures as part of a broader effort to improve economic resilience and creditworthiness. Their effectiveness will depend on sustained implementation, investor confidence and the ability to maintain a stable economic environment despite external risks.
Pakistan’s immediate energy position remains supported by supplies secured through November, according to Aurangzeb, but the outlook beyond that period will depend partly on developments in regional energy infrastructure and international prices. Continued disruption could raise procurement costs and complicate winter planning, particularly if the government needs to purchase expensive spot LNG cargoes. The finance minister’s remarks underline the connection between regional security, energy markets and Pakistan’s economic stability, as the government seeks to preserve reform momentum, strengthen public finances and manage future supply risks.
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