Sustainable growth, capital formation, private sector development vital to economic progress: Finance Minister

ISLAMABAD, Oct 1 (APP): Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb on Thursday reaffirmed the government’s commitment to sustainable economic growth, macroeconomic stability and private sector-led development, stressing the importance of capital formation and a vibrant capital market in driving Pakistan’s economic progress.

He was addressing a Gong Ceremony organized by Arif Habib Corporation at the Pakistan Stock Exchange (PSX) in Karachi to mark the listing of Naya Nazimabad Apartments REIT.

The minister highlighted the strong performance of the Pakistan Stock Exchange, noting that the KSE-100 Index had increased from around 67,000 points in March 2024 to around 170,000 points. He also highlighted the significant broadening of investor participation, with 25,281 new investors added at PSX in September 2026, the highest ever in a single month, taking the total investor base to 656,218, more than double the 321,144 investors recorded in March 2024.

He further noted that 11 companies had come to the market during FY26, the highest number in over two decades while another 5 IPOs have already been completed in the first quarter of FY27, reflecting continued momentum in capital raising and market development.

He, however, emphasized that the market was not just about the index; the broader objective was capital formation. Market confidence, he said, must translate into capital for businesses, infrastructure, housing, innovation and job creation.

Speaking about the Prime Minister’s Apna Ghar Programme, Senator Muhammad Aurangzeb said around Rs60 billion had been financed, while banks had approved an additional financing pipeline of approximately Rs340 billion awaiting disbursement.

He noted that the banking sector had taken the lead and emphasized that the supply side must now accelerate housing development. He underscored the role of the private sector, including ABAD, in supporting the initiative and highlighted REITs as an important mechanism for mobilizing investment into housing and real estate.

He noted that the participation of major Pakistani business groups in the consortium for the PIA transaction, involving Arif Habib and Mr. Tabba, represented close to US$1.2 billion in collective investment and demonstrated the growing ability of local businesses to work together, create scale and pursue larger investment opportunities.

He said that the international investors’ interest was also increasing, pointing to Turkish interest in the privatisation of electricity distribution companies and growing interest from US investors and companies in minerals and mining, agriculture, IT, oil and gas, and refinery upgrades. He stressed the foreign investment takes time to materialize and requires a conducive ecosystem supported by appropriate policies and effective facilitation.

The minister said that Pakistan’s economy had moved from contraction and stabilization towards growth, with growth currently around 3.7 percent and expected to move towards 4 percent this year.

Aurangzeb said that reforms had moved beyond the design phase into execution, covering taxation, energy, state-owned enterprises, privatization and public finance. He noted that the number of tax filers had crossed 5.7 million, compared with around 3.9 million last year and approximately 1.8–1.9 million in 2022, reflecting greater use of data, simplification of processes and stronger enforcement.

He reiterated that the Government’s role was to provide the requisite ecosystem for the private sector, including through engagement with US EXIM Bank, other export credit agencies and international partners, as well as through tariff discussions and negotiations. The private sector, he stressed, must lead investment, business expansion and economic growth.

He further emphasized the need to expand access to finance for SMEs, agriculture, housing and other underserved segments and reiterated the government’s objective of moving Pakistan’s bilateral economic relationships from aid towards trade and investment. He also highlighted the importance of positioning Pakistan for the new economy by capturing emerging opportunities in digitalization, blockchain, Web 3.0 and other emerging technologies.

Referring to the Naya Nazimabad Apartments REIT, the minister noted that the offering received around eight times subscription during book-building and 4.3 times subscription in the general public offering, reflecting strong investor interest in well-structured and transparent investment opportunities. He reaffirmed the government’s resolve to deepen capital markets, strengthen investor confidence and create an enabling environment for private sector-led development moving from stability to investment, from investment to growth, and from growth to jobs and wider economic opportunity.