Islamabad: Federal Finance Minister Senator Muhammad Aurangzeb has stated that Pakistan’s economy is now moving beyond the phase of stabilization toward export-led growth, with the country gradually embarking on a path of sustainable and long-term economic development.
In an interview with the American publication USA Today, Senator Muhammad Aurangzeb stated that Pakistan has reached a critical economic juncture, where sustained economic stability, reforms, and consistent policies are restoring confidence at both domestic and international levels, as the economy transitions from stabilization to an export-driven growth model.
He stated that new opportunities are emerging for both local and foreign investors, and the country has entered a trajectory of sustainable, long-term growth. Pakistan has begun the current fiscal year on stronger economic foundations, achieving a primary budget surplus and a current account surplus, which clearly indicates an exit from the cycle of persistent deficits.
The finance minister noted that a significant increase in remittances has been a key contributor to this improvement. Inflation, which had reached a peak of 38 percent, has now declined to single digits, while foreign exchange reserves have exceeded $14.5 billion. Stability in the exchange rate has also helped restore investor confidence.
Senator Aurangzeb emphasized that while economic stability is an essential foundation, sustainable growth remains the real challenge. He said that economic growth of 2.7 percent in the last fiscal year was positive but insufficient to meet the needs of a rapidly growing population, prompting the government to move away from a consumption- and debt-based growth model toward an export-oriented strategy.
He further stated that the current budget includes tax reforms, improvements in the energy sector, restructuring of state-owned enterprises, and tariff reforms, intending to dismantle decades-old protectionist structures and enhance global competitiveness.
The federal finance minister added that Pakistan is aligning its economic strategy with shifts in global demand. Information technology exports have surpassed $4 billion and, with consistent policies, could double within the next five years. He said efforts are also underway to simplify the tax system for exporters and reduce administrative barriers.
