Foreign investors showing interest in Pakistan, says Finance Minister

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has said the government is taking steps to attract foreign investment,

KARACHI: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has said the government is taking steps to attract foreign investment, adding that several US companies are interested in exploring investment opportunities in Pakistan.

Addressing a ceremony in Karachi, the finance minister said the government’s responsibility was to create a conducive environment for businesses, while the private sector should take the lead in establishing and expanding businesses.

Aurangzeb said the government was encouraging private-sector participation as part of its efforts to ensure sustainable economic stability. He added that the privatisation process was moving forward and the government intended to continue implementing its privatisation programme.

Referring to developments in the country’s capital market, the finance minister recalled that when he visited Karachi in March 2024, the stock market index was around 67,000 points. He said the subsequent performance of the capital market reflected increased activity and investor participation.

Discussing the government’s housing financing initiative, Aurangzeb said Rs60 billion had already been disbursed under the Apna Ghar scheme. He added that banks had approved loans worth approximately Rs340 billion under the programme, indicating continued involvement of the banking sector in housing finance.

The finance minister also spoke about the role of the Capital Market Development Council, saying the council was currently preparing recommendations aimed at further developing the country’s capital markets.

Addressing questions about foreign investment, Aurangzeb said investors and stakeholders often questioned where foreign capital was available and when it would enter Pakistan. He stressed that attracting foreign investment was a process that required time and could not be achieved immediately.

He said the government was working to create the appropriate policy and business environment to encourage international investors. According to the minister, foreign companies needed confidence in the country’s economic framework and investment opportunities before committing significant capital.

Aurangzeb also stressed the importance of making economic stability sustainable rather than treating it as a short-term achievement. He said Pakistan needed to maintain macroeconomic stability and build an economic structure capable of supporting continued growth and investment.

Discussing tax collection, the finance minister said headlines were often generated when the government failed to meet its tax collection targets. However, he argued that equal attention should be given to instances when tax collections exceeded the targets, suggesting that improvements in revenue mobilisation should also be highlighted.

He said strengthening tax collection was an important part of improving the country’s fiscal position and maintaining economic stability.

The finance minister further outlined the government’s vision for what he described as a “New Economy 2.0”. He said Pakistan needed to prepare itself for emerging economic opportunities and strengthen its financial markets to support investment and growth.

Aurangzeb added that the government was also working to expand access to the bond market for retail investors. Increasing retail participation, he said, could help broaden the country’s capital markets and provide individuals with greater access to investment opportunities.

The minister reiterated that the government would continue focusing on private-sector participation, capital market development, foreign investment, privatisation and fiscal reforms as part of efforts to strengthen Pakistan’s economy and support sustainable economic growth.