Key points
- Finance Minister tells German delegation Pakistan’s reforms, fiscal discipline, and investment facilitation gaining global confidence
- Says outlook upgrades by Fitch, Moody’s, and S&P reflect trust in policy direction
- Notes inflation moderating to 5–7% and reserves projected to reach three-month cover
ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Wednesday reaffirmed Pakistan’s commitment to macroeconomic stability and structural reforms during a meeting with a delegation of German investors and businessmen
German Ambassador to Pakistan Ina Lepel, led the delegation, according to an official statement.
The minister briefed the delegation that the government’s ongoing reform momentum has restored fiscal and external stability, stabilized the rupee, and moderated inflation. He said Pakistan’s economic revival rests on “deep structural reforms” in taxation, energy, privatization, and public finance designed to create a sustainable and competitive economy.
Aurangzeb highlighted that investor sentiment was improving and invited the German business community to explore opportunities in Pakistan’s expanding technology, energy, and manufacturing sectors.
He praised the AHK German Bilateral Chamber of Commerce for connecting established and new German investors with Pakistan’s evolving market landscape.
Sharing insights from his recent participation in the IMF–World Bank Annual Meetings in Washington, Aurangzeb said Pakistan’s macroeconomic progress and policy direction had been positively received by multilateral institutions, global investors, and credit rating agencies.
Aurangzeb underscored that deep reforms are being pursued in taxation and energy to strengthen the fiscal base and reduce systemic losses. The tax-to-GDP ratio is targeted to rise from 10.2 percent to 11 percent this year and to 13 percent in coming years.
On energy, he said the government is committed to privatization and recovery enhancement, adding that 34 state-owned enterprises have been transferred to the Privatization Commission, with “significant progress” including a recent acquisition by a UAE conglomerate.
The privatization of Pakistan International Airlines (PIA) is advancing with four large international groups currently conducting due diligence, he said, while reforms in pensions and the rationalization of non-performing entities are being implemented as part of public-finance restructuring.
He also responded to queries from the German investors on IT exports, repatriation of profits, and measures to bolster investor confidence, reiterating that Pakistan’s improving macroeconomic fundamentals and reform agenda are laying the foundation for sustainable growth.
