Finance Minister Muhammad Aurangzeb has said Pakistan possesses the fundamental strengths required to attract investment, noting that these factors are increasingly being recognised by both domestic and international stakeholders. Addressing a United Nations Development Programme (UNDP) event in Karachi virtually, the Finance Minister discussed the country’s recent economic recovery and efforts to maintain sustainable expansion. He said Pakistan had been experiencing economic contraction around three years ago, while the economy is now projected to record growth of 4% during the current fiscal year.
Aurangzeb said the government’s objective is to maintain economic expansion through responsible growth and avoid the boom-and-bust cycles that have historically affected Pakistan’s economic stability. He highlighted the importance of maintaining the gains achieved during the recovery while creating conditions that can support sustained investment and broader economic activity. The Finance Minister’s remarks came as the government continues to focus on strengthening macroeconomic conditions and encouraging greater participation from domestic and international investors.
The Finance Minister also pointed to developments in the privatisation process as an indication of foreign investor interest in Pakistan. He specifically referred to interest from Turkish companies in the country’s power distribution companies, commonly known as DISCOs. The interest in the power distribution sector reflects the government’s efforts to attract private and foreign participation in state-owned enterprises and infrastructure-related activities, while also bringing investment into sectors that require improvements in efficiency and service delivery.
Discussing Pakistan’s external account position, Aurangzeb said the country’s foreign exchange reserves had reached a record $21.4 billion a couple of weeks earlier. According to the Finance Minister, this represented the highest level of foreign exchange reserves recorded in Pakistan’s history. He said the improvement in reserves has strengthened the country’s external position and provides greater room to manage international payment requirements.
Aurangzeb further noted that the level of foreign exchange reserves now provides Pakistan with nearly three months of import cover. The improvement in reserve adequacy is an important part of the country’s broader economic stabilisation efforts, particularly because foreign exchange availability remains closely connected with the ability to meet import payments and maintain external financial stability. The Finance Minister highlighted the reserves position while discussing the wider economic fundamentals that he believes are becoming more visible to investors.
The government’s focus on sustaining growth while avoiding renewed economic imbalances remains central to its approach toward investment and economic policy. Pakistan’s projected 4% growth for the current fiscal year, together with the improved foreign exchange reserve position and interest from overseas companies in areas such as power distribution, were highlighted by the Finance Minister as developments supporting the country’s investment case. Aurangzeb also stressed the importance of maintaining responsible economic expansion rather than relying on short-term growth that could contribute to renewed instability.
The remarks at the UNDP event come as Pakistan seeks to translate improving economic conditions into increased investment activity. The government is looking to attract both domestic and international capital while continuing efforts related to privatisation and economic reform. The Finance Minister’s comments indicate that the administration views improved macroeconomic conditions, stronger reserves and interest from foreign companies as factors that can support greater investment participation in Pakistan.
With foreign exchange reserves at $21.4 billion and import cover approaching three months, the Finance Minister said Pakistan’s external position has strengthened compared with the conditions faced several years ago. Combined with the projected economic growth and foreign investor interest in sectors such as power distribution, these developments form part of the government’s broader efforts to establish a more stable environment for investment and sustain economic expansion.
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