Attacks on Gulf energy infrastructure 'worrying' for Pakistan's outlook, minister says

Pakistan's finance minister has expressed concern over attacks on energy infrastructure in the Gulf countries, warning it could negatively impact the nation's economic outlook. Speaking at the IMF-World Bank Annual Meetings in Bangkok, Muhammad Aurangzeb said the South Asian nation has managed to avoid energy shortages and logistical issues so far, thanks to procuring adequate supplies through November.

However, he highlighted that attacks on infrastructure in Saudi Arabia and other Gulf nations were a matter of worry for Pakistan's long-term economic health. Aurangzeb noted that the immediate impact of these attacks had been effectively managed, with no signs of queues at gas stations or disorder. He emphasized that unless the government felt an absolute need, they would refrain from procuring additional LNG cargoes, which are typically more expensive than contracted shipments.

The escalation in global energy prices due to the Iran war and retaliation against Gulf allies has been attributed to Tehran's actions and the ongoing conflict in Yemen. Aurangzeb stressed that any damage to energy infrastructure would further delay the country's return to economic normalcy, expressing uncertainty about the extent of the repercussions.