KARACHI: Pakistan is closely monitoring global energy markets and supply chains and has set up a high-level committee to assess the possible economic impact of escalating conflict in the Middle East, Finance Minister Muhammad Aurangzeb told the British High Commissioner on Thursday.
The interaction comes as Pakistan’s fragile economic recovery faces new uncertainty from the widening war involving Iran, which has raised fears of disruptions to global energy supplies and trade routes critical for the country’s import-dependent economy.
Pakistan has only recently stabilized its finances after years of economic turmoil marked by high inflation, dwindling foreign exchange reserves and a balance-of-payments crisis.
Tensions surged after the United States and Israel launched airstrikes on Iran amid negotiations over Tehran’s nuclear program, triggering retaliation against US military installations in the Gulf and raising concerns about broader regional escalation.
“Prime Minister has constituted a high-level committee comprising key federal ministries and the State Bank of Pakistan to closely monitor developments and undertake daily stock-taking of critical sectors, particularly energy supplies and global commodity markets,” the finance minister told the top British diplomat, according to a statement by the finance division.
“The committee is reviewing supply chains, price movements, and potential disruptions in petroleum products, crude oil, coal, and gas, while also assessing broader implications for inflation, external accounts, and financial stability,” he added.
Aurangzeb said Pakistan currently maintains adequate reserves and supply arrangements but the government is conducting scenario planning and sensitivity analysis should the regional conflict persist.
He also briefed the British high commissioner on Pakistan’s economic reform agenda and progress under its International Monetary Fund program, including measures aimed at broadening the tax base, improving compliance and strengthening governance.
Marriott welcomed Pakistan’s reform efforts and reaffirmed the United Kingdom’s support for the country’s economic stabilization and long-term growth, according to the statement.
Both sides also discussed the importance of maintaining investor confidence and promoting investment in sectors such as mining and minerals development while strengthening economic cooperation between the two countries.
