Islamabad, Pakistan – In a strategic move to bolster development financing and strengthen international partnerships, Pakistan’s Ministry of Finance held a series of high-level virtual meetings with three prominent UAE-based financial institutions—Sharjah Islamic Bank, Abu Dhabi Islamic Bank, and Ajman Bank. The discussions were led by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and aimed at reinforcing Pakistan’s macroeconomic stability through enhanced collaboration with regional banking partners.
The meetings, attended by senior officials from the Finance Division and other stakeholders, underscored Pakistan’s pursuit of long-term fiscal sustainability and investment-driven economic growth. The Finance Minister expressed appreciation for the role of Standard Chartered Bank and Dubai Islamic Bank in facilitating these engagements and emphasized Pakistan’s openness to commercial partnerships that support the country’s development agenda.
“We have broken away from the old boom and bust cycle. The current stability is backed by difficult but necessary reforms—and we are staying the course,” Senator Aurangzeb stated, signaling a commitment to sustained economic discipline and reform.
During the discussions, the Finance Minister provided a detailed update on Pakistan’s current economic performance. He highlighted significant achievements, including a projected year-end current account surplus, a primary budget surplus, and foreign exchange reserves nearing $14 billion—enough to cover three months of imports. Inflation has notably eased to 0.3 percent, and the central bank’s policy rate has declined substantially, reflecting a healthier macroeconomic outlook.
The Finance Minister also commended the Asian Development Bank for its ongoing support and collaboration in advancing Pakistan’s fiscal and development goals. Emphasis was placed on Pakistan’s structural reform agenda, which includes the restructuring of State-Owned Enterprises (SOEs), an active privatization drive, and the rightsizing of the federal government.
On the fiscal front, Senator Aurangzeb announced that Pakistan is on track to achieve a tax-to-GDP ratio of 10.6 percent by June 2025, with a target of 11 percent for the following fiscal year. He attributed this improvement to ongoing reforms within the Federal Board of Revenue (FBR), including the digitization of tax systems to expand the tax base and enhance compliance.
The minister also pointed to the positive momentum provided by the approval of the second tranche of the International Monetary Fund’s (IMF) Extended Fund Facility (EFF), as well as a $1.3 billion allocation under the new Resilience and Sustainability Fund (RSF). Pakistan has reportedly met all quantitative targets under the IMF program and achieved key structural benchmarks, including the introduction of agricultural income tax—an unprecedented development in the country’s fiscal landscape.
Further reflecting growing investor confidence, Senator Aurangzeb highlighted the recent upgrade of Pakistan’s sovereign credit rating by Fitch. Looking forward, he emphasized a shift toward a productivity- and export-led growth model. He cited strong performance in the information technology sector, with IT exports reaching $3.4 billion by March, and increased interest in Pakistan’s mineral wealth, particularly the Reko Diq copper project.
Executives from the three UAE banks acknowledged Pakistan’s progress and conveyed their perspectives on potential collaboration. The interactive sessions concluded with a shared interest in continuing dialogue and exploring concrete avenues for future investment.
Senator Aurangzeb closed the meetings by reaffirming Pakistan’s commitment to attracting quality commercial partnerships that align with its development financing goals and contribute to sustained economic growth.