Pakistan takes proactive steps to shield economy amid regional risks, Aurangzeb tells UK

Pakistan is taking proactive steps to manage potential economic implications arising from evolving regional developments, Finance Minister Senator Muhammad Aurangzeb told the British High Commissioner, Jane Marriott.

Aurangzeb’s assurance came during a meeting with the British High Commissioner to Pakistan at the Finance Division on Thursday. According to a statement, the meeting focused on regional developments, Pakistan’s macroeconomic outlook, progress on economic reforms, and avenues for strengthening bilateral economic cooperation.

The finance minister shared that the prime minister has constituted a high-level committee comprising key federal ministries and the State Bank of Pakistan to closely monitor developments and undertake daily stock-taking of critical sectors, particularly energy supplies and global commodity markets.

The committee is reviewing supply chains, price movements, and potential disruptions in petroleum products, crude oil, coal, and gas, while also assessing broader implications for inflation, external accounts, and financial stability.

Aurangzeb emphasised that Pakistan currently maintains adequate reserves and supply arrangements, noting that the government is undertaking scenario planning and sensitivity analysis in case the regional situation persists. The government is also reviewing energy conservation measures and coordinating with provincial authorities to ensure prudent resource management while avoiding unnecessary market panic.

Govt monitoring petroleum supplies amid Gulf tensions: Aurangzeb

During the discussion, Aurangzeb provided an update on Pakistan’s ongoing economic reform agenda and engagement with the International Monetary Fund (IMF) under the current programme.

He noted that the government remains committed to meeting programme benchmarks and advancing structural reforms, particularly in the areas of tax policy, revenue mobilisation, governance, and institutional transparency. He highlighted the government’s focus on broadening the tax base through data-driven enforcement and improved compliance, while ensuring fairness across sectors.

The finance minister also shared that Pakistan’s macroeconomic indicators are showing signs of stabilisation and recovery.

He noted that economic growth in the first quarter of the current fiscal year reached 3.7%, with improvements in large-scale manufacturing and resilience in the agriculture sector.

UK Commissioner Jane Marriott appreciated the government’s commitment to economic reform and reiterated the United Kingdom’s continued support for Pakistan’s efforts toward macroeconomic stability and long-term growth.

She noted that the UK remains a strong partner in Pakistan’s development and economic transformation, including through support for reform initiatives, private sector engagement, and technical cooperation.

The High Commissioner also discussed the importance of promoting investor confidence, particularly in key sectors such as mining and minerals development.

Both sides exchanged views on the importance of ensuring stability, good governance, and sustainable development in resource-rich regions to attract international investment and promote inclusive economic growth.