Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has invited the global stakeholders \u201cto support Pakistan\u2019s journey by investing in priority sectors such as agriculture, Information Technology (IT), renewable energy and pharmaceutical Sectors\u201d.
\nHe said in an exclusive article published as part of the \u2018World Economic Forum (WEF)\u2019 annual meeting.<\/p>\n
In the article published on the WEF website, the Minister highlights the transformative journey embarked upon by Pakistan in recent years towards economic stabilization and growth, according to a press release issued here on Tuesday.
\n\u201cConfronted with formidable challenges, we implemented decisive reforms to build a robust foundation for sustainable and inclusive development. Today, the results of these efforts are becoming evident, with the economy demonstrating resilience and renewed potential,\u201d he says.
\nQuestion on the series of economic reforms, he said \u201cI assumed office as Finance Minister in 2024, Pakistan faced severe fiscal and monetary pressures and inflation had surged to 38%, straining households and eroding purchasing power.\u201d
\nThe Minister said that foreign exchange reserves had dropped dangerously low, barely covering two weeks of essential imports like food and fuel and industrial output had contracted by 10.3%, and GDP growth had plummeted to 0.2%.<\/p>\n
The compounded effects of COVID-19 and devastating floods causing over $30 billion in damages further tested our resilience.<\/p>\n
Recognizing the gravity of the situation, \u201cwe implemented a series of necessary reforms and these included stabilizing the exchange rate, tightening fiscal policies, and curbing inflation through targeted monetary interventions. With support from the IMF\u2019s Extended Fund Facility (EFF) worth $7 billion, we initiated structural improvements in critical sectors such as energy and taxation. Central to this effort was \u201cUraan Pakistan\u201d, an economic transformation plan launched in 2024,\u201d he said.
\nHe said that this initiative aims to achieve sustainable, export-led 6% GDP growth by 2028 through public-private partnerships, enhanced export competitiveness and optimized public finances and priority sectors include agriculture, energy, textiles, pharmaceuticals and IT.
\nFinance Minister said that a pivotal component of \u2018Uraan Pakistan\u2019 is our collaboration with the World Bank on a $20 billion initiative targeting health, education, poverty alleviation, investment and climate resilience.
\nHe said that this transformative partnership addresses critical challenges such as child malnutrition, educational outcomes and clean energy adoption.
\nBy integrating sustainability into our development framework, \u201cwe are contributing to global efforts to achieve the United Nations Sustainable Development Goals (SDGs)\u201d he said.
\nThe Minister said that in July 2024, we introduced a reform-oriented budget with an ambitious goal of raising Rs13 trillion in revenue a 40% increase from the previous year.
\nHe said that these reforms focused on broadening the tax base by targeting under-taxed sectors like agriculture, real estate and trade, while leveraging technology to enhance compliance and transparency. Modernizing the Federal Board of Revenue (FBR) has been instrumental in streamlining tax administration.<\/p>\n
Meanwhile question on the economic revival in the country, he said that today, Pakistan\u2019s economy is on a path to recovery and inflation has dropped to 4.1%, and foreign exchange reserves now provide over two months of import coverage.
\nHe said that goods exports have risen by 7.1%, and the IT sector has grown by an impressive 28% year-on-year. Pakistan\u2019s global default risk has dropped by 93%, signaling renewed faith in the country\u2019s fiscal stability. Local and foreign investors, including global giants like Aramco, BYD and Samsung, are contributing to this economic revival, reflecting Pakistan\u2019s potential as a lucrative investment hub.
\nAurangzeb said that the current account has been in surplus for three consecutive months, and investor confidence is at a two-year high and foreign direct investment (FDI) has grown by 20% in the first half of fiscal year 2025, reflecting renewed trust in Pakistan\u2019s economic trajectory.
\nHe said that initiatives like the \u2018Roshan Digital Account\u2019 have attracted over $9 billion in inflows, while remittances have reached a record $35 billion this year and additionally, Pakistan\u2019s equity market delivered an 87% return in dollar terms, underscoring strong investor sentiment.
\nInternationally, Pakistan\u2019s progress has been acknowledged, with all three top global rating agencies upgrading the country\u2019s sovereign ratings. Moody\u2019s revised Pakistan\u2019s economic outlook to \u2018Positive\u2019 in September 2024, recognizing the impact of our policy measure, he said.
\nTalking on current economic challenges , he said that despite significant achievements, challenges remain and to break free from cycles of external assistance, Pakistan is addressing structural inefficiencies in revenue collection, energy, state-owned enterprises (SOEs) and privatization.
\nHe said that rightsizing the federal government, reforming SOEs, and fostering export-led growth will strengthen internal revenue streams and reduce reliance on international funding programmes.
\nThe Minister said that global stakeholders are invited to support Pakistan\u2019s journey by investing in priority sectors such as agriculture, IT, renewable energy, mining and minerals, textiles and apparels, pharmaceuticals, while capitalizing on Special Economic Zones (SEZs).
\nHe said that Pakistan\u2019s innovative approaches in taxation and economic stabilization offer valuable lessons for other developing economies and furthermore, partnerships in climate resilience and sustainable development are crucial for advancing shared global goals.
\nFinance Minister said that the cornerstone of Pakistan\u2019s economic transformation is political will and visionary leadership and this journey is not just about overcoming challenges but about harnessing resilience, determination and collective effort.
\nHe said that with a remarkable workforce, abundant natural resources, and immense production potential, Pakistan is poised to soar to new heights \u2013 contributing to regional stability and global economic progress.<\/p>\n","protected":false},"excerpt":{"rendered":"
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has invited the global stakeholders \u201cto support Pakistan\u2019s journey by investing in priority sectors such as agriculture, Information Technology (IT), renewable energy and pharmaceutical Sectors\u201d. He said in an exclusive article published as part of the \u2018World Economic Forum (WEF)\u2019 annual meeting. In the article published […]<\/p>\n","protected":false},"author":2,"featured_media":456557,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-456785","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n