Pakistan’s Finance Minister Muhammad Aurangzeb said the recent US-Iran agreement could bring positive economic impacts for Pakistan in the next fiscal year, but stressed that it is still “way too premature” to revise the government’s budget projections.
In an interview with Reuters, Aurangzeb said easing tensions in the Middle East may support Pakistan’s economy by helping stabilize oil prices, inflation, and regional trade routes. However, he warned that damaged energy infrastructure and disrupted supply chains would take time to fully recover.
“I do see upsides in what we have projected for next year,” the finance minister said, while cautioning against making immediate changes to the FY27 budget targets. Pakistan’s newly announced budget aims for 4% economic growth and inflation of 8.2%.
Aurangzeb also revealed that Pakistan is considering more commercial borrowing and additional global bond issuances, including Panda Bonds and Eurobonds, to improve its external debt profile without increasing total debt levels.
