Key Points
- Pakistan has the basic fundamentals needed to attract investment.
- Economy is projected to grow four per cent this year.
- Government wants growth without repeating boom-and-bust cycles.
- Turkish companies have shown interest in Pakistan’s DISCOs.
- SBP reserves have crossed $21.4 billion.
ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb said on Tuesday that Pakistan has the basic fundamentals for investment, which are being recognised at both the local and international levels.
He was virtually addressing an event organised by the United Nations Development Programme (UNDP) in Karachi.
The finance minister recalled that the economy was contracting about three years ago, but it is now projected to grow by four per cent during the current financial year.
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, virtually delivering a Keynote Address at “SDGs Investment Fair 2026: Investing in Pakistan’s Sustainable Future,” organised by UNDP Pakistan, at Marriott Hotel, Karachi.
— Ministry of Finance, Government of Pakistan (@Financegovpk) October 6, 2026
He said the government wants to move towards growth, emphasising that it must be responsible growth to avoid boom-and-bust cycles.
The International Monetary Fund (IMF) has also projected Pakistan’s real Gross Domestic Product (GDP) growth at around 3.5 to four per cent, reflecting continued momentum in sectors including automobiles, construction and garments.
The IMF has said reforms aimed at macroeconomic stability, external competitiveness and improving the private-sector business environment would be important for sustaining the recovery.
The emphasis on responsible growth comes after years in which periods of rapid expansion were followed by external financing pressures, currency instability and balance-of-payments difficulties. The government is now seeking to preserve macroeconomic stability while creating space for private investment and economic expansion.
Investor interest
Regarding privatisation, Muhammad Aurangzeb mentioned the interest shown by Turkish companies in the power Distribution Companies (DISCOs).
On the external front, the finance minister said foreign exchange reserves reached 21.4 billion dollars a couple of weeks ago, which is the highest level ever recorded in the country’s history.
He said Pakistan now has almost three months of import cover.
State Bank of Pakistan data show that its foreign exchange reserves subsequently rose to $21.44 billion as of September 25, while the country’s total liquid foreign exchange reserves stood at $26.77 billion, including $5.33 billion held by commercial banks.
The central bank’s reserves had crossed the $21.4 billion mark in September, setting a historic high. The sharp increase followed a $3 billion jump linked to proceeds from Pakistan’s international Eurobond issuance, alongside continued foreign exchange purchases by the SBP.
The buildup has also improved the country’s import-cover position. Total liquid reserves were reported to provide more than three months of import cover, strengthening Pakistan’s short-term external liquidity buffer.
