Pakistan Charts Path to Sustainable Growth Through Private Sector and Structural Reforms

The Pakistan Business Summit 2025, held at Serena Hotel in Peshawar, highlighted the pivotal role of the private sector in driving economic growth, alongside structural reforms and policies aimed at enhancing competitiveness.

Organized under the patronage of the Governor of Khyber Pakhtunkhwa, the one-day forum was co-hosted by Nutshell Group and Al Baraka Bank (Pakistan) Limited, with the Overseas Investors Chamber of Commerce and Industry (OICCI) serving as the Strategic Partner. The summit convened policymakers, business leaders, and corporate executives to discuss strategies for sustainable economic development in Pakistan.

Delivering the keynote address, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, emphasized that the government’s primary role is to ensure macroeconomic stability while creating a conducive environment for private sector-led growth. He underscored the importance of structural reforms to foster investment, enhance productivity, and improve the country’s global competitiveness.

Senator Aurangzeb highlighted recent progress, noting that Pakistan has achieved a decline in financing costs following policy rate reductions, strengthened foreign exchange reserves sufficient to cover nearly three months of imports, and maintained a stable exchange rate, all of which have bolstered investor confidence.

The Finance Minister also reported that Pakistan successfully repaid $500 million in Eurobond obligations in September 2025 and is fully prepared for the upcoming $1.3 billion repayment due in April 2026. He further noted that remittances reached $38 billion last year and are expected to rise to $41–43 billion in the current fiscal year, providing a critical boost to the economy.

Aurangzeb reaffirmed the government’s commitment to comprehensive reforms, including the separation of tax policy from administration, restructuring of state-owned enterprises, privatization, and rationalization of energy pricing. He also highlighted an export-led growth strategy and tariff reforms designed to reduce duties on raw materials and intermediate goods, further supporting industrial competitiveness.

In addition, the Finance Minister announced plans to issue Pakistan’s first Panda Bond before the end of 2025, opening access to China’s extensive capital markets. He noted that renewed investor confidence is reflected in international engagements in Beijing, Riyadh, Washington, and New York, which resulted in 24 joint venture agreements with Chinese firms.

Addressing broader challenges, Aurangzeb stressed the impact of climate change, population growth, child stunting, and learning poverty on long-term productivity and sustainable development. He underscored the importance of effectively utilizing the Rs4.3 trillion national development budget to strengthen infrastructure, healthcare, and education, ensuring that reforms translate into tangible benefits for citizens.

Concluding his remarks, Senator Aurangzeb highlighted that Pakistan’s sustainable economic recovery depends on private sector dynamism, competitiveness, and enhanced coordination between federal and provincial governments. He reaffirmed the government’s commitment to steering Pakistan toward resilience, global competitiveness, and inclusive growth, emphasizing that reforms must deliver measurable improvements in people’s lives.

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