Gulf Energy Infrastructure Attacks Worry Pakistan Finance Minister

Pakistan Finance Minister Muhammad Aurangzeb stated on Saturday, October 17, 2026, that continued attacks on energy infrastructure in Saudi Arabia and other Gulf countries are worrying for Pakistan's longer-term economic outlook. Speaking during the IMF-World Bank Annual Meetings in Bangkok, Thailand, he explained that while Pakistan has withstood the initial shock from the Iran war and skyrocketing energy prices, ongoing strikes on regional facilities could delay a return to economic normalcy.

Mr. Aurangzeb noted that Pakistan has procured enough energy supplies to last through November 2026 and is currently planning for the winter months when household needs increase. He stated that the first-order impact has been managed well without shortages, gas station queues, or law and order issues. Unless an absolute dire need arises, the government will avoid purchasing expensive spot cargoes on the liquefied natural gas front. Global energy prices have surged since the United States and Israel launched the war on Iran in February 2026, with retaliatory actions targeting Washington's Gulf allies and Houthi militants attacking Saudi infrastructure.

Meanwhile, Pakistan remains engaged in its 25th programme with the International Monetary Fund, which recently reached an agreement to release a $1.2 billion tranche. The Finance Minister highlighted that Pakistan has pursued a fiscal consolidation path, focusing on growing tax revenues and targeting tax theft by private sector businesses. Despite pushback from industry and lobbying groups against reform efforts, the government continues its agenda while navigating regional security challenges, including emergency rule in Khyber Pakhtunkhwa province.