Aurangzeb sees economy growing above 4% this year

Finance Minister Muhammad Aurangzeb has expressed optimism that Pakistan’s economy will grow by more than 4% during the

ISLAMABAD: Finance Minister Muhammad Aurangzeb has expressed optimism that Pakistan’s economy will grow by more than 4% during the current financial year, saying the country is gradually moving from economic stabilisation towards sustained growth.

Addressing an event organised by EXIM Bank in Islamabad on Monday, the finance minister said Pakistan had achieved GDP growth of around 3.7% in the previous fiscal year. He said the government was now focused on building on that progress and creating conditions for stronger economic expansion.

Aurangzeb highlighted improvements in the country’s fiscal position. He said Pakistan’s fiscal deficit had fallen to its lowest level in 22 years. He also pointed out that the country had recorded primary surpluses for three consecutive years.

The finance minister further noted that Pakistan posted a current account surplus during the previous fiscal year, describing the development as an important indicator of improving external-sector stability.

However, Aurangzeb said Pakistan still faced a major challenge in sustaining economic growth. He referred to the country’s repeated boom-and-bust cycles and linked them largely to its heavy dependence on imports.

According to the minister, the objective should not simply be to achieve a higher growth rate. Instead, Pakistan needs to ensure that economic expansion remains stable and sustainable over the long term.

He said the government was therefore prioritising an export-led growth strategy aimed at reducing structural weaknesses in the economy and strengthening Pakistan’s position in international markets.

Aurangzeb said the government intended to make effective use of the fiscal space that had become available through improved economic management. The additional space, he said, could help support productive activity and facilitate further economic expansion.

He added that the federal budget had provided a clear policy direction for increasing exports and encouraging businesses to compete in international markets.

The finance minister also stressed the importance of broadening Pakistan’s export base. He said the country needed to move beyond reliance on a limited number of export sectors and develop new areas capable of generating foreign exchange.

Aurangzeb also backed subsidised financing for small and medium-sized enterprises (SMEs), saying easier access to finance could help smaller businesses expand their operations, increase investment and contribute to export growth.

The government’s emphasis, he said, remains on creating a more resilient economy in which growth is supported by exports, productive investment and stronger private-sector participation rather than excessive reliance on imports.