Pakistan’s Finance Minister on Saturday (October 17, 2026) told AFP that the country had so far withstood the shock from skyrocketing energy prices caused by the Iran war, but that attacks on infrastructure in Saudi Arabia and other Gulf countries were “worrying” for the country’s longer-term economic outlook.
In an interview on the sidelines of the IMF-World Bank Annual Meetings in Bangkok, Muhammad Aurangzeb said Pakistan had procured enough energy supplies to last through November 2026, and was now planning for the winter months, when household needs typically spike.
“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.”
Mr. Aurangzeb expressed alarm at the escalation, saying damage to such sites would delay a return to economic normalcy. “I, to be very honest, I don’t know where that would go. But one thing is very clear: that if the infrastructure continues to get hit, the return to normalcy, even if things subside, will take longer. Pakistan has been a frequent customer of the International Monetary Fund (IMF), the lender of last resort to countries on the brink of default. Such theft accounted for billions of dollars, Mr. One of the major pillars of the IMF’s programme criteria is privatising state-owned assets in Pakistan, where the military runs a vast empire of businesses in sectors from real estate to fertiliser. Asked about those companies, Mr. Aurangzeb denied they were receiving State funding.
It is currently in the midst of its 25th programme with the Fund, at least 11 of which have been outright bailouts, since gaining independence in 1947. The current programme totals about $7 billion over three years, with the Fund reaching an agreement this month to release a $1.2 billion tranche.
He added that unless the government saw “an absolute dire need,” it would not procure spot cargoes on the LNG front, which tend to be far more expensive than previously contracted shipments. “What is now the worrying part of it is when the energy infrastructure starts getting hit,” he said. The country’s tax revenues have grown significantly in recent years, and the Finance Minister said the government was targeting the theft of taxes by private sector businesses that collected sales tax from consumers but never deposited it in government accounts. Aurangzeb said, adding that there remained “room for improvement” on increasing income tax collection as well. He said the government’s reform agenda had faced resistance from industry, lobbying groups and vested interests. “Every reform, everything that you try to do when you try to change the status quo, there is pushback,” he said. “As far as we are concerned, whichever commercial enterprises [the military] are running, they are running on a standalone basis and profitable on their own basis,” he said. “So, I can confirm to you, we are not providing any funds from the exchequer.”
