US-Iran conflict poses risks to Pakistan’s growth, inflation outlook: Aurangzeb

According to Business Recorder, Finance Minister Muhammad Aurangzeb said on Monday that the ongoing conflict could weigh on the country's expansion and inflation. He also said the government sees GDP expansion of over 4% in the current fiscal year, and that Pakistan is shifting from stabilisation toward growth. He made the remarks at an EXIM Bank event in Islamabad, where he argued that the challenge now is sustainability rather than growth.

A US official said two Iranian launchers were hit on Larak Island on Sunday, the earliest known American strikes on Iranian territory since late July. The fighting has also left the Strait of Hormuz blocked, a waterway that carried roughly a fifth of global oil supplies before the war. Aurangzeb noted that financing is nonetheless being offered to exporters at 4.5%, even though the policy rate stands at 11.5%.

He pointed to budget measures, including the reduction of super tax and removal of advance tax, which he framed as support for export-led expansion. He said the country must broaden its export base across products, services and market segments, with Pakistan Exim Bank playing a key role through export refinance and the LTFF.