Attacks on Gulf energy infrastructure 'worrying' for outlook: finance minister

Finance Minister Muhammad Aurangzeb expressed concern on Saturday regarding attacks on energy infrastructure in the Gulf countries, particularly the impact on Pakistan's economic outlook amid soaring energy prices from the US-Israeli war on Iran. Speaking at the IMF-World Bank Annual Meetings in Bangkok, Aurangzeb stated that Pakistan had so far managed to stave off the consequences of the price surge, but was now pivoting to winter preparations.

"The first-order impact has been negotiated well by Pakistan," he said, adding that the country had procured enough energy to last through November. He emphasized that unless the government deemed it absolutely necessary, spot cargoes of liquefied natural gas (LNG) would not be procured, as they are significantly more expensive than contracted shipments.

Aurangzeb was alarmed by the escalating attacks on Saudi infrastructure, including energy facilities and airports, which he believed would hinder the return to economic normalcy. He noted that damage to energy infrastructure could prolong the recovery process, saying, "What is now [the] worrying part of it is when the energy infrastructure starts getting hit."

Pakistan has been a persistent IMF borrower, currently engaged in its 25th Extended Fund Facility program since 1947, with 11 of them being outright bailouts.