Aurangzeb terms ME conflict ‘one of largest supply shocks in history’

WASHINGTON, DC: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, participated in a panel discussion titled “MENAP Economies Navigating War: Managing Shocks and Shaping the Future,” organised by the International Monetary Fund (IMF).

During the discussion, the Finance Minister described the ongoing Middle East conflict as one of the largest supply shocks in recent history, comparable in scale to the demand shock experienced during COVID-19. He noted that the crisis has triggered a broader global conversation on energy security and supply chain resilience.

He elaborated on the first-order impact of the crisis on fuel availability and pricing, while outlining Pakistan’s ongoing scenario planning for potential second and third-order effects, including implications for inflation, remittances, exports, and capital flows.

Highlighting an emerging silver lining, the Finance Minister noted that transshipment volumes at Karachi Port over the past 25–30 days had exceeded those recorded during the entire previous year, reflecting evolving opportunities in the global trade landscape.

The Finance Minister underscored that building strategic reserves remains a key takeaway from the current crisis. He further identified two important lessons being applied to the present situation: the importance of maintaining fiscal discipline supported by targeted delivery mechanisms, and the transformative role of technology in enhancing economic resilience.

Meanwhile, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with Honourable Howard Lutnick, Secretary of the United States Department of Commerce, during his visit to the World Bank–IMF Spring Meetings 2026 in Washington, D.C.

During the meeting, both sides discussed avenues for deepening bilateral economic partnership, with a focus on enhancing trade, promoting investment flows, and facilitating private-sector engagement.

The discussions also covered cooperation in key sectors including mining, energy, and information technology, with an emphasis on unlocking new opportunities for mutually beneficial economic collaboration.

Copyright Business Recorder, 2026