Aurangzeb stresses reforms for sustainable growth

Finance Minister Senator Muhammad Aurangzeb has highlighted Pakistan’s progress in restoring economic stability and outlined the government’s priorities for attracting investment, boosting exports and increasing private sector participation.

Aurangzeb made the remarks while speaking at a fireside chat titled “Pakistan: External Shocks Remain Manageable” during the J.P. Morgan Emerging and Frontier Markets Opportunities Conference in London.

The event drew considerable interest from international investors. Around 55 global investment funds held one-on-one meetings with the Pakistani delegation and participated in a dedicated investor session.

The finance minister outlined six key priorities for the economy. These include maintaining macroeconomic stability, promoting productivity and export-led growth, advancing structural reforms, shifting from aid towards trade and investment, improving access to finance and preparing the economy for digital technologies, including blockchain and Web 3.0.

Aurangzeb said restoring macroeconomic stability and rebuilding international confidence had remained the government’s central focus over the past three years. He pointed to improvements in fiscal management, the external sector, inflation control, debt management and access to international markets.

According to the minister, Pakistan’s GDP growth recovered to 3.7% in fiscal year 2026. The fiscal deficit also fell to 2.6% of GDP, which he described as a multi-year low. Pakistan has also recorded a primary surplus for the third consecutive year.

Aurangzeb said the government’s focus was now shifting towards making these gains sustainable. He said the next phase of growth should rely more on investment, productivity, exports and private sector activity instead of consumption-driven expansion.

He also highlighted measures taken to improve Pakistan’s sovereign debt position. These include active liability management, extending the maturity profile of domestic debt and reducing refinancing pressures.

The minister said fiscal consolidation and debt management measures were helping strengthen the government’s balance sheet and improve confidence in the country’s economic outlook.

Aurangzeb also noted Pakistan’s return to international capital markets through different financing instruments and investor groups. He referred to the country’s inaugural Panda Bond issuance and a subsequent $3 billion dual-tranche Eurobond, saying both transactions attracted strong investor interest.

On privatisation, he said the government was working to redefine the role of the state in the economy. He cited progress involving Pakistan International Airlines, distribution companies, financial institutions, other state-owned enterprises and airport operations.

The finance minister also stressed the need to expand financing opportunities for small and medium-sized businesses, agriculture and housing. He said public resources alone would not be sufficient to fund Pakistan’s next stage of economic growth and that private capital would need to play a greater role.

He further said Pakistan was seeking to move away from traditional reliance on aid and build stronger trade and investment relationships with international partners.

State Bank of Pakistan Governor Jameel Ahmad also addressed the gathering. He highlighted improvements in the country’s external position, including stronger foreign exchange reserves, increased remittance inflows and improved external-sector fundamentals.