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

As escalating tensions in the Gulf create fresh risks for the country's economic recovery, pakistan's economic expansion and inflation outlook could come under pressure from the ongoing US-Iran war, Finance Minister Muhammad Aurangzeb stated on Monday.

Key points

• Trump Administration Intends Mass Visa Revocations for Up to 200, 000 Asylum Seekers.
• SECP Probe Leads to FIA Case Over Alleged Multi-Billion-Rupee Financial Irregularities at Unity Foods.
• Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
• The remarks came after US forces struck two Iranian launchers on Iran's Larak Island on Sunday, according to a US official.
• Add as a preferredSource on Google Follow on Google News Join WhatsApp.

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

Meanwhile, 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 additionally led to the blockade of the Strait of Hormuz, a key global energy route that handled concerning one-fifth of the world's oil supplies before the war.

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

Notably, the finance minister remarked the administration had reduced the super tax and eliminated advance tax as part of its efforts to backing exports. According to He additionally, exporters were now able to access financing at 4.5 percent despite the policy rate standing at 11.5 percent, saying reservations over the competitiveness of export financing were now a thing of the past.

Aurangzeb remarked Pakistan Exim Bank would play an notable role in channeling export refinance and long-term financing facilities enabled through the latest budget. He continued that Pakistan needed to diversify its export base throughout both products and services as well as different market segments. Stay Connected with ProPakistani.

Obtain the latest business news, market insights, and economic updates wherever you prefer. Follow on Google Discover.

Taken together, the developments around uS-Iran War Threatens Pakistan's Economy: Finance Minister point to a situation that is still moving, and the coming days should bring more clarity.