Energy disruptions will take time to normalise despite US-Iran deal, says finance minister

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Monday described the US-Iran peace agreement as a significant development for both Pakistan and the global economy, but warned that disruptions to energy infrastructure would take time to normalise.

Addressing the “Gong Ceremony – Service Long March Tyres Limited (SLM)” virtually at the Pakistan Stock Exchange (PSX) to mark the company’s listing, the finance minister said Prime Minister Muhammad Shehbaz Sharif and Field Marshal Syed Asim Munir had earned international recognition for their efforts to facilitate dialogue and mediation that contributed to the agreement. He said the deal would help ease economic uncertainties arising from the regional conflict.

The finance minister said Pakistan’s role in supporting de-escalation efforts had strengthened its position as a constructive partner in promoting regional peace and stability, reflecting the country’s commitment to diplomacy and the peaceful resolution of disputes.

Referring to the prime minister’s announcement regarding the signing of a memorandum of understanding later this week, Aurangzeb said the development carried positive implications for Pakistan’s economy and the wider region.

He said Pakistan had successfully managed the immediate economic impact of the conflict over the past three months and expressed confidence that the agreement would reduce concerns over potential secondary and longer-term economic consequences.

While acknowledging that disruptions to energy infrastructure would take time to normalise, the minister said the agreement had improved the outlook for economic activity and created upside potential for the next fiscal year.

Turning to capital markets, Aurangzeb congratulated the management and board of the Pakistan Stock Exchange on its recent performance and highlighted growing investor participation, particularly from younger investors.

He said the listing of Service Long March Tyres Limited marked another milestone for Pakistan’s capital markets, noting that the country had recorded 11 initial public offerings during the current fiscal year, the highest number in nearly 20 years.

“The strongest vote of confidence in any economy comes when investors commit capital,” he said, adding that rising participation at the PSX reflected growing confidence in Pakistan’s economic direction.

Speaking about Service Long March Tyres Limited, Aurangzeb recalled his association with the project from its early stages and described it as an example of industrial cooperation and export-oriented investment.

He noted that the venture was successfully executed during the Covid-19 period and acknowledged the role of Chinese expertise and continued investor confidence in Pakistan.

The minister reiterated the government’s commitment to fostering an enabling environment for investment, strengthening capital markets and expanding international economic partnerships to support sustainable economic growth.