Aurangzeb signals potential gains from improved global stability while stressing cautious debt strategy and continued IMF discipline.
Image: Pakistan Today
Finance Minister Muhammad Aurangzeb has said Pakistan could see improved economic projections for FY27 following the end of the Iran conflict, but stressed it is too early to revise the federal budget.
Speaking to Reuters, he said the government had factored in possible “second- and third-order impacts” of the conflict, noting that damage to energy infrastructure could take time to fully stabilise supply chains.
Aurangzeb said inflation had been pushed back into double digits during the conflict period, but added that there were now “upsides” to earlier projections for the coming year.
However, he cautioned that any revision to the FY27 budget—targeting 4% growth and 8.2% inflation—would be premature at this stage.
On financing strategy, the finance minister said Pakistan may shift toward commercial borrowing to change its creditor mix without increasing total external debt.
He said the goal was to replace some bilateral loans with commercial funding, while keeping overall debt levels stable and aligned with the ongoing IMF programme.
Aurangzeb also said Pakistan is planning future Panda bond, Eurobond and other international issuances, but final sizes have not yet been determined.
He added that while interest in Pakistan’s defence and digital sectors is rising, it is still too early to factor any major revenue impact into forecasts.
