ISLAMABAD – Prime Minister Shehbaz Sharif has constituted a National Coordination and Management Council (NCMC) to deal with the aftermath of the Middle East war on the nation’s economy and its internal security, in a move that will also ensure faster decision-making during uncertain times. The council was established hours before Pakistan brokered a ceasefire, but in a maiden meeting of its executive committee, held on Wednesday, the council decided that it would continue working as the danger of war still looms.
It may take many weeks before the economy returns to normal functioning even if the ceasefire is turned into a permanent peace agreement. The Minister for Economic Affairs Ahad Khan Cheema and Lt General Zafar Iqbal have been made the co-chairmen of the executive committee of the council, which has representation from all federal departments, provincial governments, and special areas.
First Decisions
In a maiden meeting of the executive committee, the council allowed the export of surplus furnace oil after fully taking into account local energy production requirements. At least two refineries raised the issue of limited storage capacity, requiring the export of surplus volumes.
According to the notification, the prime minister has constituted the NCMC as a central platform comprising representatives from all federal and provincial stakeholders to facilitate informed policy decision-making and ensure effective implementation at all levels in response to the economic challenges arising from the Gulf conflict.
Mandate of the Council
The council has been given the mandate for the management of internal security, including possible internal displacement and refugees because of any untoward situation. It has also been tasked with narrative management and controlling disinformation. The council is responsible for the management and operationalization of financial, economic, and trade-related policy measures.
Emergency Energy Planning
Government sources said that during the last two days, civil-military authorities rushed to make plans to secure energy supplies in case the United States executed its threat to attack energy infrastructure and Iran retaliated with attacks on Middle East energy infrastructure.
Pakistan looked into options to import fuels from Russia, Nigeria, and some other countries. In addition to cost, the major issue was the voyage time of cargoes, which could have jumped to 30 to 35 days for a tanker due to any closure of supply routes, officials said.
Streamlining Decision-Making
Officials said that there were around five different committees that had been constituted during the past month of the war. These committees helped deal with issues arising in their respective domains but on the other hand fragmented decision-making.
Finance Minister Muhammad Aurangzeb chaired the committee on monitoring and securing fuel supplies and did a splendid job in ensuring that there were no shortages across the country. However, Deputy Prime Minister Ishaq Dar chaired another committee responsible for finalizing a plan to give targeted subsidies.
The Ministry of Information Technology was separately looking into the issue of disbursement of these subsidies, while a Maritime Affairs committee was dealing with logistics issues. Another committee was working to address issues that could hamper Pakistan’s exports because of the war.
Officials said that all these committees are being dissolved, and now these decisions will take place at the forum of the National Coordination and Management Council.
Terms of Reference
According to the terms of reference, the council would monitor macroeconomic and commodity indicators and ensure that foreign exchange reserves remain stable and there is no sporadic movement in the value of the rupee against the US currency.
Oil and commodity management would be ensured through digitalized national dashboards, and decisions would be taken to address any bottlenecks in supplies.
Remittances and Debt
Pakistan’s foreign exchange reserves remained largely stable during wartime, but the country is now set to repay $4.8 billion in debt this month. Foreign remittances, which remain the key source of reserves stability, decreased 5% in March despite the Eid factor, due to uncertainties in Middle East markets.
The central bank reported that workers’ remittances were recorded at $3.8 billion, down by 5% over the same month last year, but increased by 16.5% on a monthly basis compared to $3.2 billion receipts in February.
Cumulatively, workers’ remittances increased by 8.2% to $30.3 billion during the July-March period, compared to $28 billion received during the same period last year. Remittances during March 2026 were mainly sourced from Saudi Arabia ($918.4 million), the United Arab Emirates ($824 million), and the United Kingdom ($587.3 million).
Additional Mandates
Officials said the newly established council would ensure real-time scenario modeling and analytics for oil shocks, remittance disruption, freight cost spikes, and availability of critical commodities.
According to its other mandates, the council would look for trade diversification by identifying prospective export markets, alternate import sources, import conditions, utilization of port infrastructure, and merchant shipping. The council will work for energy security by maintaining strategic fuel reserves, price adjustment, fast-track alternate procurements, and supplementary grants for specific emergency expenditures.
It will also take over the responsibility of expenditure rationalization and monitor austerity and energy conservation measures. In case of any extreme situation, the council has been mandated to implement rationing of critical commodities. The council would identify vulnerabilities of social communities for targeted subsidies and social safety nets.
Analysis: A Unified Response
The establishment of the National Coordination and Management Council represents a significant step toward streamlining Pakistan’s response to the economic and security challenges posed by the Middle East war. By dissolving the five fragmented committees that had been operating independently, the government has created a unified platform for decision-making.
The inclusion of both civilian and military leadership — with Lt General Zafar Iqbal serving as co-chairman — reflects the seriousness with which the government views the potential threats. The council’s mandate to address internal security, including possible displacement and refugees, indicates that the government is preparing for worst-case scenarios.
The decision to continue the council’s work even after the ceasefire demonstrates recognition that the economic fallout of the war will persist long after the fighting stops. The disruption to global energy markets, the impact on remittances, and the strain on foreign exchange reserves will take months to resolve.
For Pakistan, the NCMC provides a mechanism for coordinated, rapid decision-making in a volatile environment. Whether it can effectively address the challenges ahead will depend on the quality of its analysis, the speed of its responses, and the cooperation of all stakeholders.
