ISLAMABAD
Federal Minister for Finance and Revenue Muhammad Aurangzeb has said that Pakistan has reached a critical turning point, with macroeconomic stability, sustained reforms, and policy continuity restoring confidence and steering the economy towards export-led, long-term growth.
However, in an interview with USA Today, the finance czar pointed out that the economic growth of 2.7% in the previous fiscal year, though positive, is insufficient to absorb the needs of a rapidly growing population.
The minister said macroeconomic stability was opening new horizons for domestic and global investors, and positioning the country for sustainable, long-term economic growth.
He said this transition has been enabled by macroeconomic stabilisation, easing inflation and improved external balances, with the government driving export-led, productivity-based growth through structural reforms, sustaining reform momentum despite challenges, and actively encouraging global investment in emerging opportunities across agriculture, minerals, technology and climate resilience.
Aurangzeb highlighted that Pakistan has entered the fiscal year 2025 from a position of renewed strength, marked by macroeconomic stability, improving external balances, and a firm commitment to structural reform. He noted that, for the first time in several years, Pakistan has achieved both a primary fiscal surplus and a current account surplus, signalling a decisive shift away from the cycle of recurring deficits. Strong remittance inflows have played a critical role in supporting this turnaround, while inflation has fallen sharply from a peak of 38% to single-digit levels.
Senator Aurangzeb emphasised that while macroeconomic stabilisation is an essential foundation, sustainable growth remains the central challenge. Drawing lessons from the past, he underlined that Pakistan is consciously moving away from a consumption-and debt-driven growth model towards an export-led strategy. The current budget, he explained, reflects this shift through structural reforms in taxation, energy pricing, and state-owned enterprises, alongside far-reaching tariff reforms aimed at dismantling decades of protectionism and enhancing global competitiveness.
He highlighted that Pakistan is aligning its economic strategy with changing global demand patterns, identifying information technology services, textiles, and agricultural exports as key areas with strong potential. He noted that IT exports have already crossed four billion US dollars and could double within five years with sustained regulatory clarity and infrastructure development.
