ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb on Wednesday said that the country has entered the current period of global uncertainty with strengthened policy buffers, having learned important lessons from past external shocks, including the devastating floods in recent years.
While speaking at a meeting on the sidelines of the World Bank-IMF Spring Meetings 2026 in Washington DC, the finance minister characterized the ongoing Middle East crisis as one of the most significant supply shocks in recent history.
According to a statement issued by the finance ministry on X, Aurangzeb outlined the immediate measures undertaken by the government “to address its first-order effects, including adjustments in procurement strategies, pricing frameworks, and logistics chains.”
He underscored the government’s commitment to transitioning from broad-based subsidies to well-targeted support mechanisms to protect the most vulnerable segments of the population.
The government was conducting a comprehensive assessment of the second and third-order effects of the crisis across key macroeconomic indicators, including inflation, economic growth, exports, remittances, and the current account, the finance minister said.
While reaffirming the government’s commitment to the structural reform agenda, Minister Aurangzeb emphasized that "any necessary policy recalibration would be undertaken in a responsible manner, without compromising the hard-won gains in macroeconomic stability.”
Pakistan’s emergence as constructive force in global affairs
Separately, while addressing the Atlantic Council on Pakistan’s Reform and Resilience Agenda, the finance minister underscored Pakistan’s emergence as a constructive force in global affairs, including its role in brokering a ceasefire between the United States and Iran.
He reaffirmed that the country had achieved meaningful macroeconomic stabilization, underpinned by the ongoing program with the International Monetary Fund, and supported by strong performance across both fiscal and external accounts
While talking about Saudi Arabia’s commitment of an additional $3 billion in deposits to Pakistan, the minister noted that the meeting with the Saudi government had yielded positive outcomes, including agreement on extended maturities and additional financial support to help offset repayment pressures.