- August 31, 2026
- Posted by: Tresmark
- Category:
Pakistan’s economic growth and inflation outlook could face pressure from the ongoing US-Iran conflict and escalating geopolitical tensions in the Middle East, Finance Minister Muhammad Aurangzeb has warned.
Speaking at the “Partnerships That Power Progress” event organised by EXIM Bank in Islamabad, Aurangzeb said Pakistan is transitioning from economic stabilisation towards growth, with the government targeting GDP growth of more than 4% during the current fiscal year.
However, he noted that the ongoing regional conflict could have implications for both inflation and economic growth, particularly amid disruptions to global energy markets and trade routes.
The finance minister emphasised that Pakistan’s key challenge is not merely achieving growth but ensuring that it is sustainable, export led and driven by the private sector.
Aurangzeb highlighted the government’s recent measures to support exporters, including reductions in the super tax and the removal of certain advance taxes. He also noted that export financing is being made available at 4.5%, despite the policy rate standing at 11.5%.
He said Pakistan now needs to further diversify its export base across products, services and market segments, with the Pakistan EXIM Bank expected to play a key role in facilitating export refinance and long term financing.
The minister's remarks come as geopolitical tensions in the Middle East continue to raise concerns over energy supplies, inflation and the broader global economic outlook.
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