Pakistan Warns on Gulf Energy Attacks Amid IMF Reforms — SkimNews
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- Pakistan has secured enough energy supplies to last through November 2026, avoiding fuel shortages or civil unrest despite global price spikes from the Iran war.
- Muhammad Aurangzeb stated the government would avoid expensive spot LNG purchases unless there was an 'absolute dire need,' aiming to control costs amid regional instability.
- Energy infrastructure attacks in Saudi Arabia and other Gulf states are a 'worrying' development, Aurangzeb said, as damage could delay global energy recovery even after hostilities subside.
- IMF approved a $1.2 billion disbursement as part of Pakistan’s $7 billion, three-year programme, with Aurangzeb noting the country has been on a fiscal consolidation path to meet reform targets.
- Pakistan’s tax system faces significant leakage from private businesses collecting sales tax but failing to remit it, a loss Aurangzeb estimated in the billions of dollars.
- State-owned enterprises, including those run by the military, are 'profitable on their own basis' and do not receive exchequer funding, Aurangzeb asserted, addressing IMF privatization demands.
Why it matters: Pakistan’s ability to delay costly LNG spot buys and maintain fiscal discipline hinges on Gulf energy infrastructure holding, but repeated attacks raise the risk of prolonged supply disruptions that could force emergency spending and derail its $7 billion IMF programme, directly impacting debt-vulnerable economies.
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