Pakistan secures energy supplies through November, but Gulf infrastructure attacks raise concerns: Aurangzeb

Finance Minister Muhammad Aurangzeb told AFP that Pakistan has enough energy supplies to meet domestic needs through November, despite the global price spike linked to the Iran war. At the IMF-World Bank Annual Meetings in Bangkok on Saturday, he said the country absorbed the initial shock without fuel shortages, and preparations are under way for higher winter demand. He also warned that continued strikes on energy facilities in Saudi Arabia and other Gulf states could prolong market disruption.

Pakistan is trying to avoid costly spot-market LNG cargoes and is relying on earlier contracts unless an urgent requirement arises. Spot purchases would carry sharply higher prices, which is why Aurangzeb said there would be no buying without an absolute dire need. According to Profit, fighting that began in February among the United States, Israel and Iran is still disrupting global energy markets, and Houthi strikes in Yemen have hit Saudi energy sites and airports.

On fiscal policy, Aurangzeb said the consolidation path under the 25th IMF programme has left the economy better placed to absorb external shocks. He credited better domestic tax collection but said evasion and weak compliance still cost substantial revenue, particularly from businesses that collect sales tax but fail to deposit it. He also said military-run commercial enterprises operate on a standalone basis and receive no funds from the exchequer.