Key Points
- Discussions cover investment climate, tax reforms and public sector modernisation
- Both sides reaffirm commitment to sustained economic and institutional cooperation
- Regional developments and post-conflict economic opportunities also feature in talks
ISLAMABAD: Pakistan and the United Kingdom have agreed to deepen economic ties and strengthen cooperation on reforms and investment amid a shifting geopolitical landscape. This transpires from talks between Finance Minister Muhammad Aurangzeb and British minister Hamish Falconer here on Tuesday.
The meeting brought together senior officials from both countries to discuss Pakistan’s macroeconomic outlook, structural reform agenda and opportunities to expand bilateral economic cooperation, according to a statement issued by the Finance Division.
Aurangzeb briefed the visiting delegation on the government’s economic priorities outlined in the Federal Budget 2026-27.
According to the Finance Minister, the budget document reaffirms Islamabad’s commitment to preserving macroeconomic stability, sustaining economic recovery and accelerating structural reforms aimed at achieving inclusive and durable growth.
The discussions focused on fiscal priorities, institutional modernisation and measures to improve Pakistan’s investment environment.
The Finance Minister highlighted efforts to strengthen revenue mobilisation, improve tax compliance, reduce leakages and modernise tax administration. He shared the strategy for these goals through technology, data integration, centralised processing and digital invoicing.
He said the government’s reform programme was designed not only to improve revenue collection but also to enhance transparency, reduce discretionary intervention and rebuild taxpayers’ trust in collectors.
The two sides also reviewed Pakistan’s structural reform agenda, including privatisation, rightsizing of public sector entities, improving public expenditure efficiency and expanding digital governance and targeted social protection programmes.
Regional developments featured prominently in the discussions, with Aurangzeb noting the easing of tensions following the recently agreed understanding between the United States and Iran.
He mentioned Pakistan’s role as mediator and support for dialogue, de-escalation and peaceful conflict resolution. “Prolonged instability can affect economic confidence, energy markets, supply chains and growth prospects across emerging economies,” he added.
The finance minister said Pakistan’s economic planning and fiscal assumptions had remained mindful of external and geopolitical risks. Regional stability could create more favourable conditions for trade, investment and economic activity, he maintained.
Falconer, the United Kingdom’s Parliamentary Under-Secretary of State for the Middle East, Afghanistan and Pakistan, welcomed Islamabad’s commitment to economic reforms. He also acknowledged the breadth of the government’s transformation agenda.
He emphasised the importance of sustained reform implementation, stronger institutions and efforts to improve competitiveness and governance.
Both sides reaffirmed their commitment to maintaining close engagement and strengthening Pakistan-United Kingdom cooperation in support of sustainable economic growth, institutional development and regional stability.
