ISLAMABAD: Pakistan could improve economic projections for FY27 after the end of the Iran war, but it is still too early to revise the budget, Finance Minister Muhammad Aurangzeb told Reuters, hours after the US and Iran signed a deal to end the fighting.
Damaged energy infrastructure meant supply chains would take time to return to normal, after the conflict pushed inflation back into double digits, Mr Aurangzeb said.
“We were looking at how we manage the second, third-order impact in case this conflict continues,” he said. “The energy infrastructure has been hit. And therefore, it will take time before we return to normalcy in terms of supply chains.”
He added, “I do see upsides in what we have projected for next year,” but cautioned it would be “way too premature” to revise the budget.
Pakistan’s FY27 budget, presented in parliament on Friday, targets growth of four per cent and inflation of 8.2pc. It raised defence spending 18pc to Rs3 trillion ($10.8bn), while relying on higher tax revenue to keep a $7bn IMF programme on track.
Islamabad may use commercial borrowing in 2026-27 to change its creditor profile without increasing external debt, Mr Aurangzeb added in comments on Monday.
Published in Dawn, June 17th, 2026