Attacks on Gulf Energy Sites 'Worrying' for Pakistan's Economic Outlook, Warns Finance Minister Aurangzeb

ISLAMABAD / BANGKOK: Pakistan's Finance Minister Muhammad Aurangzeb has warned that attacks on energy infrastructure in Saudi Arabia and other Gulf countries are "worrying" for Pakistan's longer-term economic outlook, telling AFP that while the country has so far absorbed the shock of soaring energy prices, further strikes on Gulf facilities could delay any return to normalcy.

Main News Report

Speaking to AFP on the sidelines of the IMF-World Bank Annual Meetings in Bangkok on Saturday, Aurangzeb said Pakistan had procured enough energy supplies to last through November and was now planning for the winter months, when household needs typically spike.

• Aurangzeb said Pakistan had "so far withstood the shock from skyrocketing energy prices" caused by the Iran war, but called attacks on Gulf energy infrastructure "worrying" for the country's longer-term economic outlook.
• "The first-order impact has been negotiated well by Pakistan," he said. "We've had no shortage, no queues at the gas stations, and no law and order situation, which at times we have seen in some of the countries."
• Unless the government sees "an absolute dire need", it will not procure spot LNG cargoes, which tend to be far more expensive than previously contracted shipments, he added.
• "What is now [the] worrying part of it is when the energy infrastructure starts getting hit," he said. "One thing is very clear: that if the infrastructure continues to get hit, the return to normalcy, even if things subside, will take longer."

Background Context

Global energy prices have surged since the United States and Israel launched the war on Iran in February, as Tehran's retaliatory action targeted Washington's Gulf allies and curtailed oil and gas supplies, according to AFP. With Yemen's civil war flaring back to life, Houthi forces have repeatedly attacked Saudi infrastructure, including energy facilities and airports, in recent days.

Pakistan, a net energy importer already enrolled in its 25th IMF programme — a $7 billion agreement over three years — is acutely exposed to swings in international oil and gas prices. The finance minister's remarks signal Islamabad's anxiety that the conflict's economic costs may still be climbing.

Reactions and Statements

Aurangzeb also pushed back against criticism of the government's reform drive, telling AFP that its efforts to broaden the tax base faced resistance from industry and lobbying groups — a "pushback" he has repeatedly highlighted since taking office.

The minister confirmed that Pakistan recently received a $1.2 billion tranche under the IMF programme and reiterated the government's commitment to fiscal reforms aimed at boosting tax revenues.

Why This News Matters

Pakistan's economy is heavily dependent on imported energy, and any sustained disruption to Gulf supplies feeds directly into inflation, the trade deficit and the fiscal burden of fuel subsidies. For households, higher energy costs translate into costlier electricity, transport and food prices — a familiar cycle that has repeatedly squeezed Pakistani consumers.

With the government banking on IMF-backed stability and an export-led recovery, a fresh energy price shock would complicate the fragile stabilisation path Aurangzeb himself has been selling to investors and lenders.

Future Developments

Pakistan will finalise its winter energy procurement plan in the coming weeks, with spot LNG purchases only as a last resort. Attention now shifts to whether Gulf infrastructure attacks continue, how OPEC and global markets respond, and whether the escalation forces Islamabad to revise its inflation and growth assumptions for the rest of the fiscal year.

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