Finance Minister Muhammad Aurangzeb on Saturday said Pakistan was closely monitoring the possible economic impact of the ongoing regional conflict on inflation, GDP growth, remittances and exports, warning that “hope alone is not a strategy.”
Addressing a joint news conference alongside Ali Pervaiz Malik, the finance minister said Pakistan’s economy continued to show signs of recovery despite heightened geopolitical tensions in the region.
Government monitoring economic risks
Aurangzeb expressed hope that the regional conflict would end soon but cautioned that any damage to regional energy infrastructure could take months to repair even after hostilities cease.
He said the government was carefully assessing the implications of the conflict on Pakistan’s macroeconomic indicators, particularly inflation, external accounts, exports and remittance inflows.
LSM growth reaches 11% in April
The finance minister highlighted strong performance in the industrial sector, stating that Large Scale Manufacturing Industries recorded 11% year-on-year growth in April 2026.
Cumulative LSM growth during the first nine months of the current fiscal year stood at 6.5%, he added.
Aurangzeb said the government expected Pakistan’s GDP growth rate to remain close to 4% during the current fiscal year compared to 3.1% last year.
Exports and remittances continue to rise
According to the finance minister, exports increased 9% month-on-month and 14% year-on-year, driven by value-added textiles, information technology and other sectors.
He described export growth as broad-based across multiple industries.
Aurangzeb also noted strong remittance inflows from overseas Pakistanis.
He said remittances reached $3.5 billion in April after touching $3.8 billion in March during Ramazan.
“These inflows are a strong vote of confidence by overseas Pakistanis,” he remarked.
Roshan Digital Account inflows hit record high
The minister said inflows under the Roshan Digital Account surged to $320 million in April, marking the highest monthly inflow since the scheme’s launch.
“This is an investment-led discussion,” Aurangzeb said, adding that overseas Pakistanis were investing in New Pakistan Certificates, real estate and the stock market.
Pakistan returns to international capital markets
Aurangzeb revealed that Pakistan had successfully returned to international capital markets after four years by raising $750 million through a Eurobond issuance despite ongoing regional tensions.
He further announced that Pakistan was preparing to access Chinese capital markets for the first time through a Panda Bond issuance.
“Inshallah, next week you will hear good news that for the first time, we will be accessing Chinese capital markets through Panda Bond,” he said.
Forex reserves expected to improve
The finance minister said Pakistan’s foreign exchange reserves were projected to reach the equivalent of nearly three months of import cover by the end of June.
He stated that macroeconomic stability was aimed at ensuring industrial continuity, facilitating imports through letters of credit, enabling profit repatriation and creating employment opportunities.
Fuel supplies remained uninterrupted
Aurangzeb praised the Petroleum Ministry for maintaining uninterrupted fuel supplies during the past two months despite regional challenges.
“There have been shortages and long queues in different countries, but Alhamdulillah nothing of that sort happened in Pakistan,” he said.
He appreciated the efforts of the Petroleum Ministry in ensuring supply chain stability during the crisis.
Government continues targeted fuel subsidies
Referring to recent increases in petroleum prices, the finance minister said the government had continued targeted subsidies for vulnerable groups, including:
• Motorcyclists
• Public transport users
• Small farmers
He added that the subsidy program had been extended into a third month following directives from the prime minister and provincial chief ministers.
Oil import bill rises by over $1 billion
Aurangzeb warned that Pakistan’s oil import bill had increased by more than $1 billion between March and April due to rising global energy prices.
He urged citizens to adopt cautious energy consumption habits to help protect the country’s external account position.
“Our external account is equally important. We all need to be careful in our consumption patterns,” he said.
The finance minister reiterated that Pakistan remained committed to fulfilling all international financial obligations with bilateral and multilateral partners as a responsible member of the global financial system.