Key points
- Minister highlights historic reduction in inflation to 0.7pc
- Doubling of foreign exchange reserves and 3pc currency appreciation
- Says current account surplus has exceeded $1 billion in March 2025
- 44pc increase in FDI; 24pc rise in IT exports: Minister
- Highlights record-high remittances projected at $38 billion
ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb has highlighted his country’s economic turnaround during Pakistan Conference at the prestigious Harvard University in the US.
According to a press release issued by Pakistan’s Ministry of Finance, Aurangzeb, while charting Pakistan’s path to inclusive growth, pledged bold reforms in climate and finance. The minister invited global investors, partners and the brightest minds in the journey of resilience, opportunity and irreversible transformation.
“Pakistan has reached a pivotal moment of economic recovery and transformation,” said Aurangzeb.
“After inheriting an economy facing significant challenges—from contracting GDP to depleting reserves—we have stabilised the fundamentals, restored confidence, and reignited growth,” he continued.
“Path to Inclusive Growth and Governance”
The finance minister made these remarks while addressing Pakistan Conference 2025, titled, “Bridging Divides, Building Tomorrow: Pakistan’s Path to Inclusive Growth and Governance,” at the Harvard University.
The Pakistan Conference is an annual flagship event that brings together policymakers, academics, business leaders, and students to discuss Pakistan’s economic, political, and social trajectory. Organised by Harvard students with support from university research centres, the event is the largest student-led conference on Pakistan in the United States.
The conference serves as a vital forum to advance collaborative solutions, promote global engagement, and showcase the creativity and resilience of the Pakistani people.
Economic turnaround
Speaking on the occasion, the finance minister highlighted key achievements: a historic reduction in inflation to 0.7 per cent, the lowest in 60 years; foreign exchange reserves doubled; a three per cent currency appreciation; and a current account surplus exceeding $1 billion in March 2025.
Pakistan also witnessed a 44 per cent increase in Foreign Direct Investment (FDI), a 24 per cent rise in IT exports, and record-high remittances projected at $38 billion. For the first time in 24 years, Pakistan achieved a fiscal surplus, with the highest primary fiscal surplus in two decades. Fitch has upgraded Pakistan’s credit sovereign credit rating to B- with a stable outlook.
Major growth opportunities
Emphasising that “stability is not an end but a means to an end, ” the finance minister outlined the government’s strategy including maintaining fiscal discipline, controlling inflation, and pushing ahead with deep structural reforms in energy, taxation, governance, and the management of state-owned enterprises. He flagged major growth opportunities in Pakistan’s rich mineral resources, expanding IT sector, green energy initiatives, and the country’s youthful entrepreneurial population. Strengthening human development, he emphasised, is critical to sustaining high, inclusive growth.
On debt management, the minister noted that Pakistan successfully reduced its public debt-to-GDP ratio from 75 per cent to 67.2 per cent, with a plan to bring it below 60 per cent over the medium term through prudent fiscal management, enhanced domestic financing, and tax reforms. Rightsizing government expenditures and privatising loss-making state-owned enterprises are expected to save up to two per cent of GDP annually, with efforts focusing on transparency, competitive processes, and investor confidence.
Building climate resilience
Discussing Pakistan’s financial sector, the minister laid out plans to build a deeper and more resilient system by expanding digital banking, capital markets, green finance.
Highlighting the impact of climate change, the Minister reaffirmed Pakistan’s commitment to integrating resilience into infrastructure and agriculture. He singled out Resilience and Sustainability Facility (RSF) from IMF and Country Partnership Programme (CPF) approved by the World Bank as anchor for building climate resilience.
“Pakistan’s future will be shaped by bold, necessary choices. By investing in our people, modernising our economy, and staying committed to reform, Pakistan will emerge stronger, greener, and more competitive,” concluded the minister.
Later, the minister interacted with the participants and answered their questions with regards to the future roadmap of Pakistan’s economy.
