Finance Minister Muhammad Aurangzeb has called on Pakistani businesses to reform their operating and revenue models, improve productivity and strengthen their ability to compete in international markets as the country moves from economic stabilisation towards sustainable growth. Addressing a leadership panel titled “From Stabilisation to Growth: Pakistan’s Long-Term Reform Agenda,” organised by the American Business Forum in partnership with the Lahore University of Management Sciences in Lahore, the finance minister stressed that economic expansion must be supported by higher production capacity, export growth and greater private-sector participation. He said businesses needed to adapt to changing international economic conditions and focus on improving efficiency rather than relying solely on favourable exchange rates or other external factors. Aurangzeb also emphasised that economic growth should generate employment opportunities, arguing that even a growth rate of 7% to 8% would not be sufficient if it failed to create jobs for the country’s expanding workforce.
The finance minister highlighted the uncertainty facing the global economy, warning that international conflicts could increase the prices of essential commodities and place additional pressure on domestic economic conditions. Despite these risks, he said Pakistan’s economic recovery was continuing and the government was working to facilitate investment and improve the business environment. He noted that international investors were considering opportunities across different markets, while European and American investors had shown interest in Pakistani bonds. According to Aurangzeb, Pakistan issued bonds worth €3 billion during the first week of September as part of its efforts to regain access to international financial markets. He also stated that the country’s credit rating had improved three times since April 2025, restoring Pakistan to the ‘B’ category after several years of efforts. These developments, he said, reflected progress in stabilising the economy and rebuilding confidence among international investors.
Aurangzeb said the government’s current programme with the International Monetary Fund was scheduled to conclude in October 2027. Pakistan secured a $7 billion, 37-month Extended Fund Facility from the IMF in September 2024 to support economic stabilisation and address external financing requirements. The latest staff-level agreement covered the fourth review of the Extended Fund Facility and the third review of the Resilience and Sustainability Facility. Subject to approval by the IMF Executive Board, Pakistan is expected to receive approximately $1 billion under the Extended Fund Facility and $210 million under the Resilience and Sustainability Facility. The finance minister also discussed the government’s efforts to reform the tax system, broaden the tax base and encourage private investment. These measures form part of the wider economic reform agenda intended to improve fiscal sustainability and support growth beyond the immediate stabilisation phase.
Export expansion remained a central theme of the minister’s remarks, with Aurangzeb saying Pakistan expected workers’ remittances to reach $44 billion during the current fiscal year. He noted that concerns about the impact of international conflict on remittance inflows had not prevented an increase in these transfers. Remittances remain an important source of foreign exchange for Pakistan, supporting household incomes and helping meet the country’s external financing needs. The minister also highlighted the contribution of freelancers to the information technology sector, stating that they accounted for approximately $1.6 billion of Pakistan’s IT exports. He pointed to young people providing technology services from home as an example of the opportunities available to expand service exports and generate income through international markets. The government, he added, had taken steps to encourage exports, including abolishing the super tax and reducing tax slabs, while exporters were being offered financing at an interest rate of 4.5%.
The minister said improvements in export performance would require businesses to address production costs and increase their capacity to manufacture goods and deliver services competitively. He identified tariffs and energy prices as important factors affecting the ability of Pakistani companies to compete with regional producers. Aurangzeb said the government had discussed providing additional electricity to industries at Rs23 per unit as part of efforts to support industrial activity. He also noted that Pakistan’s goods exports had remained around $30 billion over the previous five to ten years, while textile exports stood at approximately $17 billion. According to the minister, these figures underline the need for a broader improvement in productive capacity, investment and industrial efficiency. He stressed that export growth could not be achieved through exchange-rate adjustments alone, as businesses also needed to improve output, strengthen operations and increase their ability to serve international customers.
On exchange-rate policy, Aurangzeb supported a market-based system in which the rupee’s value is determined by supply and demand rather than being artificially maintained at a high level. He cautioned that an artificially strong currency could undermine export competitiveness by making domestically produced goods more expensive for foreign buyers. The minister said the State Bank of Pakistan had purchased around $20 billion from the market over the past few years to build foreign exchange reserves, including approximately $6 billion to $7 billion during the current year. He noted that decisions concerning exchange rates, inflation and interest rates fell within the central bank’s domain. His remarks highlighted the relationship between currency management, reserve accumulation and export performance, while reinforcing the view that businesses must improve productivity to compete internationally regardless of exchange-rate movements.
Aurangzeb also discussed energy security and the government’s preparations to meet domestic fuel requirements amid uncertainty in international energy markets. He said authorities had worked to prevent fuel shortages and long queues at petrol stations, while targeted subsidies had been provided to direct support towards people who needed it most. According to the minister, owners of larger vehicles did not require the same level of government assistance, making targeted support preferable to broad-based subsidies. He added that preparations were underway to meet Pakistan’s winter energy requirements, including securing adequate supplies of gas and liquefied natural gas. The supply situation for crude oil and other energy sources remained satisfactory, he said, adding that the country had avoided an energy shortage.
The finance minister concluded his remarks by emphasising Pakistan’s potential to expand its economic activity and progress by making better use of emerging opportunities. He said businesses would need to reconsider existing operating models, raise productivity and contribute more actively to export-led growth. Greater participation by women in the workforce was another priority, with their participation rate estimated at around 22.7%. The government’s broader agenda, as outlined by Aurangzeb, combines tax reforms, investment facilitation, export financing, energy planning and private-sector participation. The challenge will be to translate these measures into sustained gains in production, employment and international competitiveness. His message to businesses was that lasting economic growth would depend not only on stabilisation and financial support but also on stronger productive capacity, improved efficiency and the creation of more employment opportunities.
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