Aurangzeb says Pakistan secured on energy through November as Gulf attacks cloud outlook
Pakistan's finance minister told AFP the country has withstood the energy-price shock of the Iran war and holds supplies through November, but warned attacks on Gulf energy infrastructure are "worrying" for the outlook.
BANGKOK: Pakistan’s finance minister told AFP on Saturday that the country had so far withstood the shock from skyrocketing energy prices caused by the Iran war, but warned that attacks on infrastructure in Saudi Arabia and other Gulf countries were “worrying” for its longer-term economic outlook (Arab News: https://www.arabnews.pk/world/pakistan-says-attacks-on-gulf-energy-infrastructure-worrying-for-outlook-3004423).
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, and was now planning for the winter months, when household needs typically spike (Arab News; also reported by Dawn: https://www.dawn.com/news/2037797 and Geo TV: https://www.geo.tv/latest/686952-attacks-on-gulf-energy-infrastructure-worrying-for-outlook-says-finance-czar).
“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.”
He added that unless the government saw “an absolute dire need”, it would not procure spot LNG cargoes, which tend to be far more expensive than previously contracted shipments.
Since the United States and Israel launched the war on Iran in February, global energy prices have surged as Tehran’s retaliation targeted Washington’s Gulf allies and curtailed oil and gas supplies. The Houthis have also repeatedly attacked Saudi infrastructure, including energy facilities and airports, in recent days (Arab News; Geo TV).
“What is now (the) worrying part of it is when the energy infrastructure starts getting hit,” Aurangzeb said. “If the infrastructure continues to get hit, the return to normalcy, even if things subside, will take longer.”
Pakistan is in the midst of its 25th IMF programme, totalling around $7 billion over three years, with the Fund agreeing this month to release a $1.2 billion tranche (Arab News).
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