Speaking at LUMS in Lahore, Muhammad Aurangzeb says global instability and rising energy costs could intensify price pressures, while the government prepares for winter energy demand and continues tax reforms.
LAHORE, Pakistan: Federal Finance Minister Muhammad Aurangzeb has warned that global economic instability and rising energy costs could intensify inflationary pressures in Pakistan, highlighting the risks international conflicts and commodity-market changes pose to the domestic economy.
Aurangzeb made the remarks on Saturday while addressing a session on Pakistan’s long-term economic reform agenda at the Lahore University of Management Sciences (LUMS).
The finance minister said Pakistan’s economic progress was continuing despite external challenges. However, he cautioned that developments in international markets, particularly energy costs, could affect prices and economic conditions at home.
Government Preparing for Winter Energy Demand
Aurangzeb said the government was preparing a plan to meet the country’s energy requirements during the winter season. He described the supply situation for other energy needs, including crude oil, as satisfactory.
Energy prices are an important risk for Pakistan because international price increases can raise import costs and put pressure on transport, production and household budgets. The International Monetary Fund has also warned that prolonged regional conflict could intensify inflationary pressures and weaken Pakistan’s external position.
Tax Reforms and IMF Programme
The finance minister said Pakistan’s current International Monetary Fund (IMF) programme was due to end in October next year. He added that the government was taking steps to broaden the tax base and expand the scope of taxation.
The programme’s conclusion does not, by itself, mean that the country’s economic challenges will end. Sustained fiscal management, tax collection, energy security and the handling of external economic shocks will remain important to the outlook.
Government Seeks Investor Interest
Aurangzeb also said the government was facilitating investors and noted interest from American and Eastern European investors in Pakistani bonds.
The comments reflect the government’s stated focus on attracting investment and maintaining economic reforms amid uncertainty in global markets. The extent to which investor interest translates into new financing will depend on market conditions and the terms of any investment.
The minister’s remarks come as Pakistan continues to navigate inflation risks linked to energy costs and broader regional instability. The government’s winter energy planning and tax measures are among the steps it says are intended to support economic stability.
