Pakistan’s Finance Minister Muhammad Aurangzeb recently emphasized the government’s commitment to securing sustainable economic growth through a combination of structural reforms and regional connectivity. In an insightful interview with Asharq and Bloomberg at the AlUla Conference for Emerging Market Economies 2025, the minister shared an optimistic outlook for Pakistan’s economy, highlighting the progress made over the last year and outlining the strategic reforms aimed at ensuring long-term prosperity.
According to Aurangzeb, Pakistan has made significant strides in improving its macroeconomic indicators over the past 12-14 months. Key achievements include a reduction in inflation, a decrease in the policy rate, enhanced currency stability, and a return of institutional investments. These positive developments have created a foundation for the government to focus on implementing crucial structural reforms that are essential for sustainable growth.
“The government is leveraging this period of macroeconomic stability to execute vital reforms, especially in areas like taxation, energy, and the privatization of State-Owned Enterprises (SOEs). Furthermore, we are working on reducing the federal government’s size to focus more efficiently on public finances,” said Aurangzeb.
He stressed that the country’s focus is now on achieving growth that is both robust and sustainable, which requires prudent fiscal management and long-term planning. “As we move forward, we are determined to ensure that this growth is sustainable. This will require us to continue practicing sound fiscal management,” he added.
One of the key takeaways from the interview was Pakistan’s determination not to repeat the mistakes of the past, particularly the challenges posed by twin deficits. “We are now in a better position with both the current accounts in surplus and a primary surplus. We aim to consolidate these gains and utilize the available fiscal space to prioritize expenditures that will support our growth trajectory,” said the finance minister.
For Pakistan, Aurangzeb pointed to two major drivers of future growth: investment and trade. He emphasized that these two sectors would play an essential role in the country’s economic expansion in the coming years. Highlighting the significance of regional trade connectivity, the finance minister noted the increasing importance of regional corridors for trade and economic development.
“Pakistan’s relationship with China has been a key component of our trade strategy, particularly through the Belt and Road Initiative (BRI). In the future, I see the Gulf Cooperation Council (GCC) region playing an even more crucial role in our economic partnerships,” Aurangzeb remarked. This strategic shift toward the GCC is expected to open up vast export opportunities for Pakistan.
Aurangzeb further elaborated on Pakistan’s aspirations to significantly boost its export sector, revealing that the government has set an ambitious target. “We see huge potential in these markets and are aiming to double our exports in the next three to five years,” he said, reflecting a strong commitment to strengthening Pakistan’s trade relations and diversifying its export markets.
This strategic emphasis on regional connectivity, particularly with China and the GCC, could play a pivotal role in Pakistan’s efforts to create a more diversified and resilient economy. Moreover, the minister’s focus on sustainable growth signals a shift towards long-term economic planning that balances fiscal responsibility with developmental goals.
As Pakistan continues to navigate complex economic challenges, the government’s focus on structural reforms and expanding trade opportunities within regional corridors offers a path toward more sustainable and balanced economic growth. Through these initiatives, Pakistan aims to enhance its competitiveness in the global market while maintaining fiscal discipline at home.