Pakistani remittances hold steady amid Gulf energy crisis, Rs129bn fuel subsidy in place

Pakistan’s remittances from Gulf countries remain stable despite the ongoing Middle East conflict, Finance Minister Muhammad Aurangzeb told the National Assembly on Tuesday.

Aurangzeb said roughly 40-50% of remittances originate from GCC countries and noted the government is reviewing potential effects on the current account, balance of payments, and inflation.

The minister warned that even after a ceasefire, the energy crisis could persist for weeks or months, as critical infrastructure in the Gulf has been damaged and remains vulnerable.

To shield consumers, the government has provided a blanket Rs129 billion petroleum subsidy and targeted support for two-wheelers, four-wheelers, and public transport, while continuously monitoring rising oil and gas bills, freight, insurance costs, and crude transport.

Aurangzeb cited the UAE, where petrol and diesel prices have risen by 30% and 70%, as an example of the global scale of the crisis, and stressed that proactive planning is essential. “While we hope for the best, we have to plan for the worst,” he said, highlighting ongoing measures to maintain economic stability.