ISLAMABAD, Dec 24 (APP):Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, said that Pakistan has reached a critical turning point, with macroeconomic stability, sustained reforms, and policy continuity restoring confidence and steering the economy towards export-led, long-term growth.
In an interview with USA Today, the minister said this was opening new horizons for domestic and global investors, and positioning the country for sustainable, long-term economic growth.
He said this transition has been enabled by macroeconomic stabilisation, easing inflation and improved external balances, with the government driving export-led, productivity-based growth through structural reforms, sustaining reform momentum despite challenges, and actively encouraging global investment in emerging opportunities across agriculture, minerals, technology and climate resilience.
Aurangzeb highlighted that Pakistan has entered the fiscal year 2025 from a position of renewed strength, marked by macroeconomic stability, improving external balances, and a firm commitment to structural reform.
He noted that, for the first time in several years, Pakistan has achieved both a primary fiscal surplus and a current account surplus, signalling a decisive shift away from the cycle of recurring deficits. Strong remittance inflows have played a critical role in supporting this turnaround, while inflation has fallen sharply from a peak of 38 percent to single-digit levels.
Foreign exchange reserves have risen to over 14.5 billion dollars, providing import cover of approximately two and a half months, and the exchange rate has remained stable, helping to restore investor confidence.
Senator Aurangzeb emphasised that while macroeconomic stabilisation is an essential foundation, sustainable growth remains the central challenge. He pointed out that the economic growth of 2.7 percent in the previous fiscal year, though positive, is insufficient to absorb the needs of a rapidly growing population.
Drawing lessons from the past, he underlined that Pakistan is consciously moving away from a consumption- and debt-driven growth model towards an export-led strategy. The current budget, he explained, reflects this shift through structural reforms in taxation, energy pricing, and state-owned enterprises, alongside far-reaching tariff reforms aimed at dismantling decades of protectionism and enhancing global competitiveness.
He highlighted that Pakistan is aligning its economic strategy with changing global demand patterns, identifying information technology services, textiles, and agricultural exports as key areas with strong potential. He noted that IT exports have already crossed four billion US dollars and could double within five years with sustained regulatory clarity and infrastructure development. Efforts are also underway to simplify tax regimes for exporters and reduce bureaucratic hurdles in order to foster long-term productivity and competitiveness.
Addressing the broader reform agenda, Senator Aurangzeb stated that privatisation of state-owned enterprises, tariff liberalisation, and restructuring of the energy sector are designed to address deep-rooted inefficiencies that have historically strained public finances. These reforms, he said, are part of a longer-term vision, echoing the World Bank’s assessment of Pakistan’s potential “East Asia moment.” He referred to the ten-year Country Partnership Framework with the World Bank, the first of its kind, which places emphasis on economic reform alongside climate resilience and population management.
The Federal Minister also underscored that Pakistan’s future hinges on addressing existential challenges beyond fiscal indicators. Population growth, climate change, child stunting, learning poverty and the exclusion of girls from education were identified as critical issues that must be tackled to safeguard the country’s long-term productive capacity.
He stressed that increasing women’s participation in education and the workforce is both a social imperative and an economic necessity. On climate resilience, he highlighted Pakistan’s engagement with multilateral partners to strengthen preparedness against increasingly frequent floods and droughts.
While acknowledging the risks that remain, including global commodity price shocks, external debt pressures, and political uncertainty, Senator Aurangzeb reaffirmed the government’s commitment to staying the reform course despite geopolitical and domestic challenges. He emphasised that discipline, consistency, and international cooperation remain central to safeguarding recent gains.
Highlighting opportunities for investors, the Federal Minister pointed to agriculture, minerals and mining, and the emerging digital economy as priority sectors. He drew attention to Pakistan’s vast agricultural potential, the strategic importance of the Tethyan Copper Belt in Balochistan amid rising global demand for critical minerals, and the growing focus on data centres, artificial intelligence, and digital services.
He noted that regulatory frameworks are being updated to support innovation and encourage foreign investment, particularly from the United States, describing technological change as a major game-changer for Pakistan.
Towards the end, Senator Muhammad Aurangzeb conveyed a clear message to the international community, inviting global investors and partners to engage with Pakistan through trade, investment, and collaboration.
Emphasising the country’s reform momentum, economic potential, and natural beauty, he reiterated that Pakistan is transitioning from a narrative of crisis management to one of opportunity and transformation, offering promising prospects for those willing to engage with a market on the cusp of sustainable growth.
