The government has officially added twenty-eight more state-owned enterprises to the mandate of the Privatization Commission as part of its accelerated campaign to restructure the national economy. Finance Minister Muhammad Aurangzeb announced this development during his address at the Pakistan Banking Summit 2026, emphasizing that the state remains fully dedicated to pursuing deep economic reforms. He explained that these measures are specifically designed to enhance operational efficiency across public sectors, draw in substantial foreign and domestic investment, and ultimately reinforce the fiscal stability of the country.
Reflecting on the performance of the previous fiscal year, the finance minister shared that the national economy concluded the period on a much more resilient footing. The gross domestic product achieved a growth rate of 3.7 percent, a trajectory heavily bolstered by a noticeable expansion within the large-scale manufacturing sector. Furthermore, the national current account maintained a stable position throughout the fiscal year, a baseline that Aurangzeb attributed to historic levels of workers remittances, which reached an estimated total of between forty-one billion and forty-two billion dollars. He noted that value-added exports also served as a cornerstone for maintaining macroeconomic balance, while the total foreign exchange reserves climbed to a healthier level of 18.4 billion dollars.
The minister also highlighted that the country has successfully renewed its access to international capital markets, pointing to Eurobonds as a key indicator and highlighting Panda Bonds as a critical tool for diversifying future sovereign financing. On the domestic front, the financial landscape showed signs of modernization as the Pakistan Stock Exchange facilitated eleven initial public offerings over the course of the fiscal year. Notably, a rising demographic of younger market participants, particularly from Generation Z, displayed an increasing appetite for capital market investments. Aurangzeb also underscored a milestone in national self-reliance, stating that the government managed the entire economic impact of the 2025 floods through domestic resources alone, marking a shift from the international assistance required during the catastrophic floods of 2022.
Turning to fiscal policy and taxation, the minister detailed several strategic adjustments introduced in the recent budget to alleviate pressure on productive sectors. The government completely removed the super tax for businesses with an annual valuation falling below five hundred million rupees, a structural change aimed directly at protecting and expanding smaller enterprises. Relief was also extended to the construction industry, alongside a complete reduction of customs duties on agricultural machinery down to zero. The state is concurrently working to widen the net by formalizing the retail sector and integrating advanced technological solutions to minimize direct human interaction within tax administration, which the minister identified as crucial for restoring public trust. Aurangzeb rejected the sustainability of a final tax regime, advocating instead for a simplified, equitable framework where all societal segments contribute their fair share.
In terms of financial inclusion, the minister revealed that monthly inflows into Roshan Digital Accounts experienced a sharp increase, jumping from one hundred and eighty million dollars to three hundred million dollars over the preceding three months. The government plans to further ease capital accessibility for small and medium enterprises while lowering its reliance on public debt by instilling rigid fiscal discipline and empowering non-bank financial institutions. Additionally, he noted that formal no-objection certificates were granted to exchange companies in December 2025 to explore artificial intelligence, blockchain, and virtual assets, while explicitly urging commercial banking platforms to elevate their cybersecurity infrastructure in step with rapid digitization. Touching briefly on regional trade, Aurangzeb mentioned that trade engagements with Iran are in their preliminary phases following the recent Iran-US war, though the administration remains optimistic about forging stronger economic links with friendly Islamic nations.
Sharing the stage at the summit, Pakistan Banks Association Chairman Zafar Masud corroborated the positive momentum by presenting substantial growth data from the commercial banking sector. Masud stated that banks have been highly proactive in extending credit to agriculture, small businesses, and green initiatives, with the banking industry contributing over one trillion rupees to the national exchequer in annual taxes. According to the chairman, agricultural lending grew by thirty-nine percent, housing finance surged by ninety percent, and the total number of small business borrowers expanded by one hundred and eleven percent, pushing the total value of small enterprise loans up by eighty percent. To support broader economic challenges, the banking sector extended 2.4 trillion rupees in financing to mitigate the power sector circular debt and structured three hundred billion rupees in private sector funding to facilitate the privatization of Pakistan International Airlines.
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