Finance minister targets 4% growth, plans market return amid Middle East crisis

Federal Minister for Finance Muhammad Aurangzeb said Pakistan is targeting around 4% economic growth this fiscal year while managing the economic impact of the Middle East conflict and preparing to return to international capital markets.

Speaking on Fox Business Network during the IMF–World Bank Spring Meetings 2026, the minister said the government is currently addressing first-round effects of the crisis, including challenges related to energy procurement, pricing, and supply chains.

He said the impact on inflation, growth, and the external sector will depend on the duration and intensity of the conflict.

Aurangzeb noted that remittances remained strong, reaching $3.8 billion in March, while the country also recorded a current account surplus.

He said Pakistan is on track to meet fiscal and external sector targets, including building foreign exchange reserves equivalent to three months of imports.

The minister highlighted that Pakistan has repaid a $1.4 billion Eurobond on time and acknowledged financial support from Saudi Arabia, including $3 billion in additional deposits and extension of existing funding.

Outlining the financing strategy, he said the government is preparing to access international capital markets through instruments such as Panda Bonds and eurobonds to diversify funding sources.

On regional developments, the minister said Pakistan’s leadership is engaged in diplomatic efforts aimed at sustaining the ceasefire and supporting further negotiations.