Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has outlined Pakistan’s economic progress and the government’s priorities for moving from macroeconomic stabilisation towards investment, capital formation, exports and private sector-led growth. Speaking at the “Fireside Chat: Pakistan: External Shocks Remain Manageable” during the J.P. Morgan Emerging and Frontier Markets Opportunities Conference in London, the finance minister said the country had made progress in fiscal consolidation, external sector stability, inflation management, debt management and access to international markets. The conference also attracted significant interest from global investors, with 55 investment funds engaging with the Pakistani delegation through one-on-one meetings and a full investor session.
Aurangzeb outlined six priorities for the next phase of the country’s economic policy. These include making macroeconomic stability durable, promoting sustainable growth based on productivity and exports, continuing structural reforms, moving from aid towards trade and investment, expanding access to finance and positioning Pakistan for the emerging digital economy through areas including digitalisation, blockchain and Web 3.0. The priorities reflect a shift in emphasis from restoring stability towards creating conditions for investment, productivity, exports and greater participation by private businesses. The government has also described this transition as a move from stabilisation towards broader capital formation and private sector-led growth.
The finance minister said Pakistan’s primary task over the past three years had been to restore macroeconomic stability and rebuild economic credibility. He pointed to improvements in fiscal and external-sector conditions, noting that GDP growth recovered to 3.7 percent in FY26 while the fiscal deficit declined to 2.6 percent of GDP, described as a multi-year low. Pakistan also recorded a primary surplus for the third consecutive year. Aurangzeb said the objective was now to make these stability gains durable and establish a growth model increasingly driven by investment, productivity, exports and private sector activity instead of short-term consumption-led expansion.
The minister also highlighted changes in Pakistan’s sovereign debt management. He said the government had pursued active liability management, extended the maturity profile of domestic debt and worked to reduce refinancing risks. According to the government’s account, these measures, together with fiscal consolidation, are intended to strengthen the sovereign balance sheet and support confidence in the country’s economic outlook. Pakistan has also re-established access to international capital markets through different financing instruments and investor pools, with Aurangzeb referring to the inaugural Panda Bond issuance and the subsequent $3 billion dual-tranche Eurobond transaction, both of which attracted investor interest.
Privatisation and greater private-sector participation were also highlighted as part of the government’s economic agenda. Aurangzeb said privatisation was being pursued alongside a broader restructuring of the role of the state, with progress involving Pakistan International Airlines, distribution companies, financial institutions, other state-owned enterprises and airport operations. He also said access to finance was being expanded for small and medium-sized enterprises, agriculture and housing. The finance minister stressed that public balance sheets alone could not provide the funding required for Pakistan’s next phase of growth, making private capital an increasingly important component of investment and productive activity.
On external economic engagement, Aurangzeb said Pakistan was moving from traditional dependence on aid towards stronger trade and investment flows. The government has said it intends to deepen both goods and services trade while attracting greater long-term investment through economic relationships. The digital economy was also included in the government’s priorities, with the finance minister highlighting blockchain and Web 3.0 as emerging areas where Pakistan could seek to participate. He linked this opportunity to the country’s young workforce and expanding digital ecosystem, which he said could create additional avenues for investment and growth.
State Bank of Pakistan Governor Jameel Ahmad, who was also present at the conference, highlighted improvements in Pakistan’s external position, including foreign exchange reserves, the quality of reserve accumulation, rising remittance flows and broader external-sector fundamentals. He also pointed to the contribution of Roshan Digital Account flows, external-sector reforms and strengthening financial-sector fundamentals. Ahmad noted progress in containing inflation, with these developments contributing to the broader macroeconomic environment described by the government as a foundation for sustainable growth and investment.
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