Key Points
- Finance Minister addresses summit in Peshawar, stresses macroeconomic stability
- Reserves now cover nearly three months’ imports, Eurobond repayments on track
- Remittances touch $38bn, projected to rise to $41–43bn this fiscal year
PESHAWAR: Pakistan’s Finance Minister Muhammad Aurangzeb on Thursday called for private sector–led economic growth and wide-ranging structural reforms, telling a business summit in Peshawar that recent stability in reserves, remittances and debt repayments had created space for deeper reforms in taxation, state enterprises, energy pricing and foreign investment.
In his keynote address at the Pakistan Business Summit at Peshawar, he cautioned that climate change and population growth pose existential challenges to the economy.
The one-day summit, organised under the patronage of the Governor of Khyber Pakhtunkhwa, carried the theme “Shaping What’s Next” and brought together policymakers, business leaders, and corporate executives to discuss Pakistan’s economic trajectory, competitiveness, and innovation.
It was co-hosted by Nutshell Group and Al Baraka Bank (Pakistan) Limited, with the Overseas Investors Chamber of Commerce and Industry (OICCI) as a Strategic Partner.
Aurangzeb commended the organisers for convening the forum in Peshawar and underlined that the government’s foremost role was to provide macroeconomic stability and an enabling environment for businesses.
“The private sector must be the engine of growth. The government will create the right ecosystem through stability, reforms, and facilitation of investment,” he said.
Economic progress and stability
Reviewing recent developments, the minister highlighted a decline in financing costs following cuts in the policy rate, improved foreign exchange reserves now covering nearly three months of imports, and stability in the exchange rate. These factors, he said, had boosted investor confidence and facilitated the repatriation of dividends and profits.
Aurangzeb reported that remittances had improved to $38 billion in the last fiscal year and were projected to reach $41–43 billion this year. He added that Pakistan had successfully repaid $500 million in Eurobond obligations in September without market disruption and was well-prepared for the upcoming $1.3 billion repayment in April 2026.
Reform agenda
The minister reiterated the government’s resolve to implement broad-based reforms, including separating tax policy from tax administration to restore credibility with investors. He pointed to restructuring of state-owned enterprises, ongoing privatisation, and rationalisation of energy pricing as central planks of the agenda.
Aurangzeb also stressed the importance of export-led growth and tariff reforms to lower duties on raw materials and intermediate goods.
He said Pakistan was seeking efficient foreign direct investment (FDI), citing recent official engagements in Beijing, Riyadh, Washington, and New York. According to him, 24 joint venture agreements had been signed with Chinese companies, while plans were underway to issue Pakistan’s inaugural Panda Bond before year-end to tap into Chinese capital markets.
Long-term challenges
The finance minister cautioned that climate change and population growth remained existential challenges. He underscored the urgency of addressing child stunting, learning poverty, and climate resilience, noting their direct impact on productivity and competitiveness.
Aurangzeb further called for effective utilisation of the Rs 4.3 trillion national development budget, stressing investments in infrastructure, health, and education as essential to sustainable progress.
