Key Points
- Finance Minister emphasises export-led policy and industrialisation as the next growth priority
- Measures under review for the textile and real estate sectors
- Government highlights digitalisation, tax reforms, and rising foreign exchange reserves
ISLAMABAD: Pakistan is preparing to unveil a major relief plan for its construction sector as the government shifts its focus to industrialisation and long-term economic growth, Federal Finance Minister Muhammad Aurangzeb said during an address to business leaders.
Aurangzeb outlined that after achieving macroeconomic stability, the government’s next priority is promoting industrialisation through export-led growth.
“The prime minister is expected to make a formal announcement on construction sector relief soon,” he said, noting that support measures for the textile and property sectors are also under review, with decisions expected within 10 to 12 days.
Speaking at the regional office of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Aurangzeb emphasised that the government cannot generate jobs for the country’s population of 250 million alone. “Job creation is the responsibility of the private sector; our role is to create a supportive environment,” he said.
He highlighted that digitalisation of the economy would increase transparency and boost revenue collection, while also providing relief to salaried taxpayers who currently bear a higher share of the tax burden. Aurangzeb also confirmed that construction would be treated separately due to its close linkage with multiple other industries.
The finance minister noted that the benefits of Pakistan’s agreement with the International Monetary Fund (IMF) are becoming evident. Confidence in the country’s economy among international institutions is being restored, reserves are strengthening, inflation has eased, and the government aims to reduce the policy interest rate to single digits. “When this government took office, Pakistan had only two weeks of import cover; now reserves are much stronger,” he said.
Aurangzeb also stressed the importance of IT exports, which currently generate $3-4 billion annually. With proper incentives, the sector has the potential to grow to $8-10 billion, although a significant portion of export earnings currently comes from the same sector.
Addressing the challenges posed by the devastating 2022 floods, Aurangzeb said the government now has the capacity to handle future economic shocks, highlighting that tough but necessary reforms had averted a potential default crisis.
Business leaders and representatives from export and other sectors attended the meeting. They also shared proposals for boosting economic growth and supporting key industries. The meeting gave a vibe of a renewed partnership between the public and private sectors to strengthen Pakistan’s economy.
