ISLAMABAD/WASHINGTON D.C: Pakistan’s Finance Minister Muhammad Aurangzeb says the launch of China–Pakistan Economic Corridor (CPEC) Phase 2.0 has set the tone for a new era of industrial cooperation and private investment, underscoring the government’s broader push for economic revival and digital transformation.
In an interview with CGTN America during the IMF–World Bank Annual Meetings, Aurangzeb said Pakistan had achieved “notable consolidation” in its macroeconomic indicators over the past year. Inflation has returned to single digits, the policy rate has been halved, and foreign exchange reserves now cover 2.5 months of imports. Major global rating agencies — Fitch, Moody’s, and S&P — have upgraded Pakistan’s outlook for the first time in three years, he added.
The minister said the country’s partnership with China remains “long-standing and robust,” with CPEC Phase 2.0 focusing on industrial zones, technology transfer, and private-sector-led growth. During Prime Minister Shehbaz Sharif’s recent visit to Beijing, 24 new joint ventures were signed across mining, agriculture, IT, artificial intelligence, and pharmaceuticals.
Macroeconomic Stability, IMF Progress, and Market Reentry
Aurangzeb confirmed that Pakistan had completed the second review under the IMF’s Extended Fund Facility, resulting in a staff-level agreement. “The Fund’s management has shown continued confidence in Pakistan’s reform agenda,” he said, referring to structural adjustments in taxation, energy, and public finance.
He highlighted the government’s revival of its privatization drive — noting the sale of a small bank to a UAE-based conglomerate as the first successful transaction of the year — and added that the national airline’s privatization would conclude before the fiscal year ends.
Improved fundamentals have also allowed Pakistan to regain access to international markets after two years, with borrowing from Middle Eastern banks and plans to issue the country’s inaugural Panda Bond by year-end. The minister said Pakistan repaid a $500 million Eurobond in September and remains well-positioned to meet its next $1.3 billion payment due in April 2026.
Aurangzeb also addressed the country’s climate vulnerability, saying floods had hit rice and cotton crops, but GDP growth would still hover around 3.5 percent. He said digital transformation — personally led by the Prime Minister — had improved transparency, pushing the tax-to-GDP ratio up to 10.2 percent. Pakistan, he added, has concluded new tariff negotiations with the U.S. to support textile exporters and remains committed to trade diversification and South–South cooperation.
At the recent Shanghai Cooperation Organization Summit in Tianjin, the minister endorsed President Xi Jinping’s Global Governance Initiative, noting its emphasis on sovereign equality, rule of law, and multilateralism — principles “closely aligned with Pakistan’s global outlook.”
