The Finance Minister of Pakistan stated on Saturday that the country managed to withstand the shock from the sharp rise in energy prices caused by the war with Iran. However, he noted that attacks on infrastructure in Saudi Arabia and other Gulf countries raise serious concerns regarding the long-term economic prospects of the nation.
In an interview given during the annual meetings of the IMF and World Bank in Bangkok, Muhammad Aurangzeb told AFP that the South Asian country has secured energy reserves until November and is now planning supplies for the winter months, when household demand usually increases.
He emphasized that the initial impact was successfully mitigated by Pakistan: 'We did not have a deficit, there were no queues at gas stations, and there was no law and order situation that we sometimes observe in some countries.'
Aurangzeb added that Pakistan will not purchase spot cargoes on the LNG market unless the government sees an 'absolutely acute necessity,' as such cargoes are significantly more expensive than previously concluded contracts.
Following the start of the US and Israeli alliance war against Iran in February, global energy prices rose sharply because Tehran's retaliatory actions were directed against Washington's allies in the Persian Gulf, leading to a reduction in oil and gas supplies.
Amid the resumption of civil war in Yemen, Houthi rebels have repeatedly attacked Saudi infrastructure, including airports and energy facilities, in recent days.
Aurangzeb expressed concern over the escalation, stating that damaging such facilities will slow down the return to economic stability. He noted: 'What is worrying now is when energy infrastructure objects begin to be hit.' He continued: 'Frankly, I do not know where this will lead. But one thing is clear: if infrastructure continues to be attacked, the return to normal conditions will take longer, even if the situation calms down.'