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ISLAMABAD, Nov 5 (APP):Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb on Wednesday called for a fundamental shift from reactive policymaking to a forward-looking, reform-driven approach aimed at stabilizing Pakistan’s economy, restoring investor confidence, and setting a sustainable course for growth.
Addressing the inaugural session of ‘The Future Summit – 9th Edition’ in Karachi, he outlined the government’s commitment to structural reforms, fiscal discipline, and strategic partnerships to redefine the country’s economic direction, according to press release issued by finance ministry here.
He shared global and national perspectives drawn from his recent engagements in Washington and Riyadh, noting that the world economy has demonstrated greater resilience than anticipated, aided by structural reforms and enhanced private sector participation in many countries.
He underscored the growing global consensus on scaling back government roles and promoting productivity-led, private sector–driven growth, alongside opportunities in artificial intelligence and technology-led innovation.
Turning to Pakistan, the Finance Minister reaffirmed that macroeconomic stability has been achieved and externally validated, with major rating agencies upgrading Pakistan’s outlook and the IMF’s second review under the ongoing program concluded successfully.
However, he emphasized that macro stability “is not an end in itself but a means to an end,” forming the foundation for sustained investment and long-term growth.
Highlighting encouraging trends, he noted that corporate profitability in Pakistan has risen by 14% during the first nine months of 2025, and that 73% of CEOs in the latest OICCI survey now consider Pakistan a viable investment destination, up from 61% earlier. These indicators, he said, reflect growing investor confidence and the country’s improving direction.
Senator Aurangzeb pointed to a “confluence of favorable factors” — including macro stability and geopolitical tailwinds — that now position Pakistan to convert bilateral support into trade and investment flows led by the private sector.
He reaffirmed the government’s commitment to providing an enabling ecosystem in priority sectors such as minerals and mining, IT, agriculture, pharmaceuticals, and the blue economy.
Discussing technological advancement and the knowledge-based economy, the Minister welcomed Google’s decision to open an office in Pakistan and to make the country a regional technical and export hub.
He emphasized the need to equip youth with digital and technical skills to help them capture higher-value opportunities in coding, blockchain, and AI-driven sectors.
On structural reforms, Senator Aurangzeb stressed that Pakistan is “no longer in a design phase but in the implementation mode.”
He outlined progress in areas such as taxation, energy, state-owned enterprises, privatization, public finance management, rightsizing of government, pension reforms, and debt servicing.
He highlighted the use of AI-led monitoring and invoicing systems to curb leakages in tax collection, the addition of 900,000 new tax filers, and international recognition of Pakistan’s reform efforts by the World Bank.
He reaffirmed the government’s commitment to privatization, noting the recent acquisition of a local bank by a major UAE conglomerate and ongoing work on the PIA and power distribution companies’ transactions.
He also shared updates on the right-sizing of federal ministries and departments, closure of loss-making entities like Utility Stores Corporation and PASCO, and the transition to a defined-contribution pension scheme for new government entrants.
Addressing the summit’s theme of “Course Correction,” the Finance Minister said that while Pakistan must “stay the course” on structural reforms, urgent course correction is needed in two existential areas, population growth and climate change.
He called for a national sense of urgency to tackle population growth, child stunting, and learning poverty, and to fully utilize the $2 billion climate-related financing available under the World Bank’s Country Partnership Framework.
He reaffirmed the government’s resolve to sustain economic reforms, strengthen resilience, and advance a reform agenda focused on long-term sustainability and human development.