WASHINGTON: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, participated in a panel discussion organized by the International Monetary Fund (IMF) titled “MENAP Economies Navigating War: Managing Shocks and Shaping the Future.”
During his remarks, the Finance Minister described the ongoing conflict in the Middle East as one of the largest supply shocks in recent history, comparable in magnitude to the global demand shock witnessed during the COVID-19 pandemic. He said the evolving crisis has intensified the global debate on energy security and the resilience of supply chains.
Senator Aurangzeb noted that the immediate impact of the conflict has been most visible in fuel availability and price volatility.
He added that Pakistan is actively engaged in scenario planning to assess potential second- and third-order effects, particularly on inflation, remittances, exports, and capital flows.
Highlighting emerging opportunities amid global disruptions, the Finance Minister pointed out that transshipment volumes at Karachi Port over the past 25–30 days had exceeded the total volume recorded during the entire previous year. He said this reflects shifting trade dynamics and new possibilities within the regional logistics landscape.
He further stressed that the development and maintenance of strategic reserves is a critical lesson from the current global environment.
He identified two key policy priorities being applied in response to the crisis: maintaining fiscal discipline supported by targeted delivery mechanisms, and leveraging technology to strengthen economic resilience and improve governance outcomes.
The Finance Minister said these approaches are essential for managing uncertainty and ensuring macroeconomic stability in an increasingly volatile global environment.
