Senator Muhammad Aurangzeb, Pakistan’s Finance Minister, reaffirmed the government’s commitment to fulfilling its external debt obligations while addressing business leaders at the Pakistan Business Summit in Peshawar. During his keynote speech under the theme “Shaping What’s Next,” Aurangzeb highlighted recent fiscal developments and emphasized the government’s strategy to stabilize the economy and rebuild investor confidence.
He noted that the government successfully repaid a $500 million Eurobond on September 30, accomplishing the payment without causing disruptions in financial markets. Looking ahead, Aurangzeb expressed confidence that Pakistan will honor the $1.3 billion Eurobond scheduled for April 2026, underscoring the country’s ability to meet international debt commitments amid global economic uncertainties.
The Finance Minister also highlighted several macroeconomic indicators signaling improvement. According to Aurangzeb, foreign exchange reserves now cover nearly three months of imports, exchange rates remain stable, and financing costs have decreased, creating an environment conducive to economic growth. He further reported that remittances reached USD 38 billion last year and are expected to increase to USD 41–43 billion in the current fiscal year, providing additional support to the country’s external accounts.
Aurangzeb discussed key reforms aimed at enhancing fiscal discipline and economic efficiency. These include separating tax policy from administration, privatizing state-owned enterprises, reforming energy pricing, and promoting exports through tariff reductions and increased foreign investment. He also revealed plans for Pakistan to issue its first Panda Bond by the end of the year to access larger Chinese capital markets and diversify funding sources.
The Finance Minister emphasized the importance of effective allocation of the national development budget, currently set at Rs. 4.3 trillion. He urged proper distribution across infrastructure, health, and education sectors, alongside improved cooperation between federal and provincial authorities. According to Aurangzeb, these measures are essential to ensure that macroeconomic improvements translate into tangible benefits for citizens.
Addressing long-term challenges, Aurangzeb noted that issues such as climate change, rapid population growth, child stunting, and learning poverty could adversely affect productivity if left unaddressed. He stressed that reforms must be inclusive and holistic to convert fiscal gains into real socio-economic outcomes.
The Finance Minister’s assurances regarding Eurobond payments are expected to reinforce investor confidence in Pakistan’s capital markets and external debt management, particularly among foreign institutional investors. Analysts view the timely repayment of international obligations as a positive signal for the country’s financial credibility, which could pave the way for further foreign investment and improved market sentiment.
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