Pakistan Has Energy Supplies Through November, Minister Says

Pakistan has procured enough energy supplies to last through November and is planning for winter months when household needs typically spike, according to Finance Minister Muhammad Aurangzeb.

Aurangzeb stated that Pakistan has negotiated well the first-order impact of skyrocketing energy prices due to the Iran war, experiencing no shortage, no queues at the gas stations, and no law and order situation. However, he expressed concern that attacks on energy infrastructure in Saudi Arabia and other Gulf countries are worrying for Pakistan's longer-term economic outlook.

Aurangzeb indicated the government would avoid procuring spot LNG cargoes unless in absolute dire need due to their higher cost compared to contracted shipments. Since the U.S. and Israel launched the war on Iran in February, global energy prices have surged due to Tehran's retaliatory actions targeting Gulf allies and curtailing oil and gas supplies.

The Houthis in Yemen have repeatedly attacked Saudi infrastructure, including energy facilities and airports. Aurangzeb warned that damage to energy infrastructure would delay a return to economic normalcy, stating, if the infrastructure continues to get hit, the return to normalcy, even if things subside, will take longer. He also mentioned Pakistan's ongoing fiscal consolidation and tax reforms as part of its IMF program.