Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, delivered a comprehensive keynote address at the inaugural EU-Pakistan High Level Business Forum held at the Islamabad Marriott Hotel. Speaking to a diverse audience of senior policymakers, European and Pakistani business leaders, and financial experts, the minister presented a detailed vision for the national economy. He underscored that Pakistan has successfully transitioned from a phase of crisis management to a trajectory of stability and growth, projecting a Gross Domestic Product expansion of 4 percent for the 2026 fiscal year. This optimistic outlook is grounded in the steady improvement of macroeconomic indicators and a robust commitment to fiscal discipline.
During his address, the finance minister highlighted the critical role of structural reforms currently being executed across various sectors. These reforms are designed to address long standing systemic weaknesses, enhance the competitiveness of local industries, and create a more transparent environment for international investors. Aurangzeb emphasized that the government is focusing on inclusive growth by improving access to finance for small and medium enterprises and driving digital innovation. He noted that the external sector remains stable, bolstered by strong remittance flows and a surge in information technology exports, which have contributed to a favorable current account position in recent months.
The minister also shared significant updates regarding the national foreign exchange reserves, which are expected to reach approximately 18 billion dollars by the end of June 2026. This increase in reserves is a key part of the strategy to provide a three month import cover and instill confidence in global markets. Aurangzeb pointed to recent external validations, including successful engagements with international financial institutions and the re-entry into the global capital market, as evidence that the economic roadmap of the government is gaining international credibility. These achievements are seen as essential building blocks for attracting sustainable foreign direct investment from the European Union and beyond.
Addressing the challenges posed by the global energy crisis, the minister detailed the institutional response of Pakistan to mitigate the impact on the local economy. He explained that despite regional conflicts affecting energy infrastructure and global pricing, the government is committed to protecting the productive sectors and ensuring food security. The minister also touched upon the recent monetary policy adjustments, explaining that the central bank’s decision to maintain high interest rates is a necessary measure to anchor inflation expectations amidst global price volatility. By prioritizing macroeconomic stability, the government aims to shield the economy from external shocks while pursuing long term development goals.
The forum also served as a platform to launch the EU-Pakistan Business Network, an initiative involving over 300 European companies active in the country. Senator Aurangzeb welcomed this development, noting that the European Union remains the top export destination for Pakistan and a vital partner in technological collaboration. He encouraged European investors to explore opportunities in priority sectors such as renewable energy, agri-business, and green logistics. The minister’s presentation reinforced the theme that Pakistan is ready for business, offering a clear regulatory framework and a stabilized economic environment for strategic partnerships that benefit both regions.
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