ISLAMABAD, Dec 24 (Alliance News): Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has said that Pakistan has reached a critical economic 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 that improving economic indicators were opening new opportunities for domestic and global investors and positioning Pakistan for sustainable growth.
He noted that easing inflation, improved external balances and disciplined macroeconomic management had laid the foundation for a shift towards productivity-based development.
Senator Aurangzeb said Pakistan entered fiscal year 2025 from a position of renewed strength, marked by macroeconomic stability and a firm commitment to structural reforms.
For the first time in several years, the country has achieved both a primary fiscal surplus and a current account surplus, signalling a clear break from the cycle of recurring deficits.
He attributed this turnaround to strong remittance inflows, a sharp decline in inflation from a peak of 38 percent to single-digit levels, and rising foreign exchange reserves, which have crossed 14.5 billion dollars.
He added that a stable exchange rate and improved external balances had helped restore investor confidence.
While welcoming these gains, the minister stressed that stabilisation alone was not enough. He said economic growth of 2.7 percent in the previous fiscal year, though positive, was insufficient to meet the needs of Pakistan’s rapidly growing population.
Learning from past experiences, he said the government was moving away from consumption- and debt-driven growth towards an export-led economic model.
He explained that the current budget reflects this shift through reforms in taxation, energy pricing and state-owned enterprises, along with tariff liberalisation aimed at improving competitiveness and reducing protectionism.
He said Pakistan was aligning its economic strategy with global demand trends, with information technology, textiles and agriculture identified as priority export sectors.
Senator Aurangzeb noted that IT exports have already exceeded four billion dollars and could double within five years with regulatory clarity and improved infrastructure.
He added that efforts were underway to simplify tax regimes and reduce bureaucratic hurdles for exporters to boost productivity.
Highlighting the broader reform agenda, the minister said privatisation, energy sector restructuring and tariff reforms were essential to addressing long-standing inefficiencies that burden public finances.
He referred to the World Bank’s ten-year Country Partnership Framework, which focuses on economic reform, climate resilience and population management.
He also underscored that Pakistan’s long-term future depends on addressing challenges such as population growth, climate change, child stunting, learning poverty and the exclusion of girls from education.
He said greater participation of women in education and the workforce was both a social necessity and an economic priority.
On climate resilience, Senator Aurangzeb said Pakistan was working closely with multilateral partners to strengthen preparedness against floods and droughts.
While acknowledging risks such as global commodity price shocks, external debt pressures and political uncertainty, he reaffirmed the government’s commitment to staying the reform course.
The finance minister highlighted agriculture, minerals and mining, and the digital economy as key investment sectors, pointing to the Tethyan Copper Belt in Balochistan and growing opportunities in data centres, artificial intelligence and digital services.
He said regulatory frameworks were being updated to support innovation and attract foreign investment, particularly from the United States.
Concluding his remarks, Senator Muhammad Aurangzeb invited the international community to engage with Pakistan through trade, investment and collaboration, saying the country was moving from crisis management to a phase of opportunity and transformation.
