Finance Minister Muhammad Aurangzeb warned that the global energy crisis could persist for months, even after a ceasefire in the Gulf. He cited widespread damage to energy infrastructure and ongoing attacks as key factors delaying recovery. The minister addressed parliament while responding to lawmakers’ questions on the situation.
Aurangzeb said that normalising the global energy sector will take weeks, if not months, even after hostilities end. He emphasized that governments and businesses must plan strategically to cope with persistent disruptions. Pakistan is actively monitoring freight, insurance costs, crude oil transport, and rising petroleum rates.
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To mitigate domestic impact, the government has initiated subsidies for two-wheelers, four-wheelers, and public transport, totaling Rs129 billion on petroleum products. Aurangzeb highlighted fuel rationing measures in other Gulf countries, noting petrol and diesel prices in the UAE rose by 30% and 70%, respectively.
The minister also addressed Pakistan’s economic resilience, noting that remittances—roughly 40-50% from GCC countries—have not yet been impacted. He said the government is evaluating the crisis’s effects on the balance of payments, current account, and inflation, emphasizing the need for International Monetary Fund support under the Extended Fund Facility.
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Aurangzeb further mentioned upcoming repayments, including a $3.5 billion loan to the UAE and $1.3 billion in Eurobond payments by June. He stressed that while Pakistan entered the crisis with some buffers, careful financial planning and international support are crucial to weather the prolonged energy and economic challenges.