Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has said that Pakistan’s economy is moving in the right direction and has shifted from economic stabilization towards growth, with the private sector expected to play a leading role in sustainable development and investment. Addressing members and stakeholders of the Overseas Investors Chamber of Commerce and Industry (OICCI), the finance minister said the government would continue to provide a conducive business environment, an effective policy framework and investment facilitation, while sustainable economic growth must increasingly be led by the private sector. Aurangzeb outlined six key economic priorities of the government: strengthening macroeconomic stability and resilience to economic shocks; moving from stabilization towards sustainable growth driven by productivity, investment, exports and employment; continuing structural reforms; shifting Pakistan’s global economic engagement from aid towards trade, investment and private capital flows; expanding access to finance for SMEs, agriculture, housing and underserved segments; and preparing the country for the new economy through digitalization, blockchain, Web 3.0 and emerging technologies. He said Pakistan had moved through a difficult period of economic contraction and stabilization and was now transitioning towards growth. According to the minister, the key challenge is to make this growth sustainable and avoid a return to boom-and-bust economic cycles. The finance minister emphasized that economic expansion should be driven by productivity, investment, exports and job creation rather than temporary liquidity and consumption-led growth. Highlighting the importance of domestic investment and capital formation, Aurangzeb referred to the Pakistan International Airlines transaction, saying major Pakistani business groups had demonstrated the capacity to mobilize around $1.2 billion collectively through collaboration. He said the government’s role was to provide a business-friendly environment, policy framework and regulatory facilitation, while the private sector should lead economic activity and investment.On foreign investment, Aurangzeb said Pakistan was taking steps to attract greater international investment, with growing interest in mining and minerals, technology, agriculture, oil and gas, refinery upgrades and other sectors. He also highlighted interest from Turkish investors in the privatization of power distribution companies, as well as increasing interest from Saudi and other international investors in various sectors. The minister said the government’s structural reform agenda had moved beyond the design stage into implementation, covering taxation, energy, state-owned enterprises, privatization and public finances. He said the number of tax filers had surpassed 5.7 million, compared with around 3.9 million last year and approximately 1.8 to 1.9 million in 2022. He added that digitalization and data would play an increasingly important role in strengthening tax administration and improving revenue collection. Aurangzeb also highlighted efforts to expand access to financing for SMEs, agriculture, housing and financially underserved segments. Referring to the Prime Minister’s Apna Ghar programme, he said around Rs60 billion in financing had already been provided, while banks had approved significant additional financing. He said the challenge was now to translate available financing into greater housing supply, construction, investment, employment and broader economic activity. The finance minister also stressed the need to deepen Pakistan’s capital markets so that domestic savings could be channelled more effectively into productive investments, including infrastructure, housing, privatization and private-sector expansion. He reiterated the government’s objective of shifting bilateral economic relations from aid towards trade and investment and preparing Pakistan for the new economy. He said digitalization, blockchain, Web 3.0 and emerging technologies offered significant opportunities for investment, innovation, exports and job creation. During the meeting, OICCI representatives shared their views on the business and investment environment and discussed opportunities to increase international investor participation.Aurangzeb reiterated that the government would focus on policy continuity, investment facilitation and sound economic governance to support sustainable, inclusive and private-sector-led economic growth.
