US-Iran War Threatens Pakistan’s Economy: Finance Minister

Pakistan’s economic growth and inflation outlook could come under pressure from the ongoing US-Iran war, Finance Minister Muhammad Aurangzeb said… Read More The post US-Iran War Threatens Pakistan’s Economy: Finance Minister appeared first on ProPakistani.

[](javascript:void(0)) [](javascript:void(0)) [](https://api.whatsapp.com/send?text=https%3A%2F%2Fpropakistani.pk%2F2026%2F08%2F31%2Fus-iran-war-threatens-pakistans-economy-finance-minister%2F&intent=share) [](javascript:void(0)) Pakistan’s economic growth and inflation outlook could come under pressure from the ongoing US-Iran war, Finance Minister Muhammad Aurangzeb said on Monday, as escalating tensions in the Gulf create fresh risks for the country’s economic recovery.

Speaking at the “Partnerships That Power Progress” event organized by EXIM Bank in Islamabad, Aurangzeb said Pakistan was moving from stabilization toward growth and expected economic growth to exceed 4 percent in the current fiscal year. However, he acknowledged that the war could affect both inflation and gross domestic product (GDP).

The remarks came after US forces struck two Iranian launchers on Iran’s Larak Island on Sunday, according to a US official. The war has also led to the blockade of the Strait of Hormuz, a key global energy route that handled about one-fifth of the world’s oil supplies before the war.

Aurangzeb said Pakistan’s immediate economic challenge was no longer growth alone but ensuring that growth remained sustainable. He said the government’s strategy was centered on export-led and private sector-led growth, with recent budget measures aimed at creating greater fiscal space for this approach.

The finance minister said the government had reduced the super tax and eliminated advance tax as part of its efforts to support exports. He also noted that exporters were now able to access financing at 4.5 percent despite the policy rate standing at 11.5 percent, saying concerns over the competitiveness of export financing were now a thing of the past.

Aurangzeb said Pakistan Exim Bank would play an important role in channeling export refinance and long-term financing facilities enabled through the latest budget. He added that Pakistan needed to diversify its export base across both products and services as well as different market segments.

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