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ISLAMABAD: Pakistan has re-entered international capital markets for the first time in four years, completing a privately placed Eurobond transaction that drew strong investor interest and was subsequently upsized, according to Finance Minister Muhammad Aurangzeb. In a post on X (Twitter), the Finance Ministry reported that the minister shared those details during a meeting with the Ambassador of the European Union to Pakistan, Raimundas Karoblis, who called on Aurangzeb at the Finance Division in Islamabad. Aurangzeb described the Eurobond transaction as a reflection of improving economic fundamentals and a signal of Pakistan&#39;s broader reintegration into global financial markets. The minister stated the government is pursuing a diversified capital markets strategy, including future international issuances and innovative financing instruments designed to strengthen external buffers and ensure sustainable financing. During the meeting, the EU ambassador invited Aurangzeb to the High-Level EU&ndash;Pakistan Business Forum, scheduled for April 28, 2026, in Islamabad. The minister accepted, and is expected to deliver the keynote address at the opening plenary session. The session&#39;s theme is &quot;Pakistan Rising: Incentives, Reforms, and the Next Investment Frontier.&quot; Aurangzeb praised the European Union&#39;s role in convening international and domestic business representatives, describing such forums as a platform to present Pakistan&#39;s improving business climate and investment potential, and to foster business-to-business engagement. The minister also addressed broader economic priorities, including maintaining macroeconomic stability, strengthening foreign exchange reserves, and advancing structural reforms for sustainable and inclusive growth. He acknowledged the continued support of bilateral partners in reinforcing Pakistan&#39;s economic resilience. On trade, Aurangzeb expressed hope for continued progress under the GSP+ framework, calling it a central pillar of Pakistan&ndash;European Union economic relations. The meeting concluded with both sides committing to further strengthen Pakistan&ndash;EU economic ties and expand trade, investment, and business collaboration.

Finance Minister Muhammad Aurangzeb (right) meets Raimundas Karoblis, ambassador of the European Union to Pakistan, during a meeting at the Finance Division on April 21, 2026. (Ministry of Finance/X)

Economy

Finance Minister Muhammad Aurangzeb meets with the EU ambassador ahead of a high-level business forum as Islamabad courts fresh international investment.

Pakistan returns to global bond markets, eyes deeper EU investment ties

Faraz Saeed

LAHORE: Rising global oil prices&nbsp;stemming from the <a href="https://www.pakistantv.com/article/usisrael-war-on-iran-day-11" target="_blank">war in the Middle East&nbsp;</a>have led Pakistan to implement emergency measures to protect its economy, with fuel costs and market volatility prompting authorities to act immediately. The crisis centers on the <a href="https://www.pakistantv.com/article/hormuz-crisis-as-iran-war-disrupts-global-oil-supply-and-fuel-prices" target="_blank" style="color: rgb(0, 0, 0);" rel="noopener noreferrer">Strait of Hormuz</a>, through which roughly 20% of the world&rsquo;s oil supply passes. Oil futures surged 31%, with West Texas Intermediate briefly hitting $119.48 per barrel and Brent at $119.50. This marks the first time prices have crossed $100 since the Russian-Ukrainian War started in 2022. The spike follows escalating tensions in the Middle East, which forced Gulf producers to cut output. This prompted some commercial vessels to avoid the strait. With only a limited number of tankers initially transiting the strait, there were fears of major supply disruptions. Prices eased after a G7 meeting suggested coordinated measures, including the release of strategic reserves, and after US President Donald Trump said the conflict could conclude sooner than expected, CBS News reported. By Monday&rsquo;s close, WTI settled at $94.77 and Brent at $98.96 per barrel. Markets rebound Pakistan&rsquo;s financial markets reflected investor anxiety. The Pakistan Stock Exchange suffered its largest single-day drop on March 2, falling more than 16,000 points, according to Topline Securities. On March 9, the index fell by over 11,000 points after attacks on Iranian oil depots in Tehran. However, after Monday&#39;s panic tone, the local bourse witnessed a powerful comeback on Tuesday as confidence quickly returned to the market. The bulls charged aggressively from the opening bell, triggering a temporary market halt amid intense buying activity. Momentum remained strong throughout the session, pushing the index to an impressive intraday surge of 11,873 points, before settling at 156,177 (up 9,696 points or 6.62%). The market followed its Asian peers, which rebounded after oil prices plunged overnight. Some analysts see further signs of stabilization. Arif Habib Limited said global sentiment may be approaching a &ldquo;peak fear&rdquo; phase. &ldquo;Globally, it appears we are reaching &lsquo;peak fear&rsquo; moments and any positive news regarding the conflict will result in markets aggressively repricing higher,&rdquo; the brokerage said in its note. The firm stated that with the index down about 25% from its January peak, valuations may begin to attract long-term investors if geopolitical tensions ease. Domestic fuel prices Rising global oil prices have translated into higher domestic costs. Pakistan increased fuel prices by roughly 20% last week. Economists warned of ripple effects. Waqas Ghani of JS Global, speaking to Pakistan TV Digital, said a $10 per barrel increase could add $300 million immediately to the import bill and raise annual costs to up to $2 billion. Inflation could rise by about 0.6 percentage points. Economist Dr Ikram ul Haq, speaking to Pakistan TV Digital, noted the effect on transportation and essential goods, especially diesel-dependent logistics. He also cited Pakistan&rsquo;s reliance on petroleum levies and the broader fiscal implications of prolonged high oil prices, which could put pressure on foreign exchange reserves. Securing alternative supplies Pakistan has sought alternative energy sources. Saudi Arabia assured crude shipments via the Port of Yanbu on the Red Sea, bypassing the Strait of Hormuz. Petroleum Minister Pervaiz Malik said three shipments are expected soon, with one vessel already assured for crude loading at Yanbu. Energy analysts say the arrangement will help reduce the risk of supply disruptions. &ldquo;This arrangement will improve supply security,&rdquo; Ghani said. &ldquo;This move has allowed Pakistan to avoid disruption risk.&rdquo; Protecting trade, reducing consumption The Pakistan Navy launched Operation Muhafiz-ul-Bahr to safeguard maritime trade routes, the military said. The government also implemented austerity measures to reduce fuel consumption. Prime Minister Shehbaz Sharif <a href="https://www.pakistantv.com/article/pakistan-announces-austerity-measures-as-oil-supply-disrupted-by-middle-east-clashes" target="_blank" style="color: rgb(0, 0, 0);" rel="noopener noreferrer">announced</a> a four-day workweek and work-from-home arrangements for half of the public and private-sector staff. Fuel allocations for government vehicles will be cut 50% for two months. Ministers will forgo salaries, parliamentarians will take a 25% cut, and senior officers will lose two days of pay. Schools will close for two weeks, universities will shift to online instruction, departmental spending will drop by 20%, official foreign travel will be suspended, and vehicle purchases will be banned. PM Sharif said the steps aim to shield citizens from the worst impact of rising oil prices. Meanwhile, the State Bank of Pakistan kept its policy rate at 10.5%, citing uncertainty from the Middle East conflict. The Monetary Policy Committee said higher fuel, freight, and insurance costs, along with trade and travel disruptions, could affect the economy depending on the conflict&rsquo;s intensity and duration. Officials stated that immediate measures are meant to cushion the economy. The long-term impact will depend on easing tensions in the Gulf and on global oil market stability.

Pakistan's stock market saw Monday's volatility with an 11,000-point drop amid Middle East war oil fears, but Tuesday brought a strong rebound, closing up 9,696 points (6.62%) at 156,177, as confidence returned and oil prices plunged.

Pakistan acts to shield economy amid Middle East oil crisis

ISLAMABAD: Pakistan Finance Minister Muhammad Aurangzeb said Thursday that Pakistan holds sufficient reserves and supply arrangements to manage potential economic fallout from regional developments, the Finance Ministry reported.&nbsp; During a meeting with British High Commissioner Jane Marriott, Aurangzeb detailed the government&rsquo;s strategy for stabilizing the economy. He stated that Prime Minister Shehbaz Sharif recently formed a high-level committee to monitor global commodity markets and energy supplies daily. This group includes members from federal ministries and the State Bank of Pakistan. The committee tracks price movements and potential disruptions in crude oil, coal, gas, and petroleum products. Officials are also assessing how these factors impact inflation and financial stability. Aurangzeb stated the government is performing sensitivity analysis and scenario planning to address a prolonged regional crisis. The finance minister said energy conservation measures are currently under review. The Finance Ministry is coordinating with provincial authorities to manage resources and prevent market panic. Aurangzeb provided an update on Pakistan&rsquo;s engagement with the International Monetary Fund.&nbsp; He stated the government remains committed to meeting program benchmarks. Current efforts focus on tax policy, revenue mobilization, and institutional transparency. The government aims to broaden the tax base through data-driven enforcement. Economic indicators show signs of recovery. Growth reached 3.7% in the first quarter of the current fiscal year. Large-scale manufacturing and the agriculture sector contributed to this improvement. Aurangzeb said the focus is now transitioning from stabilization to sustainable growth. The British High Commissioner acknowledged the government&rsquo;s reform efforts and detailed the United Kingdom&rsquo;s support for Pakistan&rsquo;s macroeconomic stability. The discussion also covered investor confidence in the mining and minerals sectors. Both sides agreed on the importance of good governance to attract international investment. The meeting concluded with both officials pledging to strengthen bilateral economic cooperation.

Highlighting the government’s proactive measures to manage potential economic impacts amid evolving regional developments, Pakistan's Finance Minister said that the country has adequate reserves and supply arrangements.

Articles tagged with "Pakistan Economy"

Pakistan returns to global bond markets, eyes deeper EU investment ties

Pakistan acts to shield economy amid Middle East oil crisis

Pakistan maintains strong reserves to counter regional market disruptions: Finance minister

Pakistan returns to global bond markets, eyes deeper EU investment ties