Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, during his visit to the Overseas Investors Chamber of Commerce and Industry (OICCI) in Karachi, said Pakistan’s economy was moving in the right direction, stressing that sustainable economic growth would have to be led by the private sector, while the Government would continue to provide a conducive business environment, policy framework and investment ecosystem.
The Finance Minister outlined the Government’s six economic priorities: bringing permanence to macroeconomic stability by building lasting fiscal and external resilience and stronger shock-absorbing capacity; moving from stabilization to sustainable, inclusive and responsible growth driven by productivity, investment, exports and jobs; staying the course on structural reforms through sustained, credible and implementation-focused reforms; moving from aid to trade and investment by reorienting Pakistan’s global economic engagement towards trade, investment and private capital flows; expanding access to finance for SMEs, agriculture, housing and underserved segments; and positioning Pakistan for the New Economy by harnessing digitalization, blockchain, Web 3.0 and emerging technologies.
Addressing OICCI members and stakeholders, Senator Muhammad Aurangzeb said Pakistan’s economy had progressed from a difficult period of economic contraction and stabilization towards growth. “Three years ago, the country’s economy had contracted. Today, we have moved from stabilization towards growth, and we have to make sure that this growth remains sustainable,” he said.
He stressed the need to consolidate these gains, bring permanence to macroeconomic stability and break away from the boom-and-bust cycle. Growth, he said, must increasingly be driven by productivity, investment, exports and employment rather than temporary injections of liquidity and consumption-led expansion.
Highlighting the importance of domestic investment and capital formation, the Finance Minister referred to the PIA transaction, where major Pakistani business groups had demonstrated their ability to work together and mobilize close to US$1.2 billion collectively. He said such participation reflected the growing capacity of local investors to create scale and pursue larger investment opportunities.
“The Government’s job is to provide a business-friendly and enabling environment; the private sector has to lead economic growth,” the Finance Minister said. He added that the Government would continue to provide the required policy framework, regulatory facilitation and investment ecosystem, including through engagement with US EXIM Bank, other export credit agencies and international partners, as well as through tariff discussions and negotiations.
On foreign investment, Senator Muhammad Aurangzeb said measures were being taken to attract greater international investment into Pakistan. He highlighted emerging investor interest across mining and minerals, technology, agriculture, oil and gas, refinery upgrades and other sectors. He also noted interest from Turkish investors in the privatisation of electricity distribution companies, alongside growing interest from Saudi and other international investors across a range of sectors. He stressed that foreign investment takes time to materialize and requires policy continuity, effective facilitation and a conducive investment ecosystem.
Highlighting the Government’s structural reform agenda, the Finance Minister said reforms had moved beyond the design phase into execution, covering taxation, energy, State-Owned Enterprises, privatisation and public finance. He noted that the number of tax filers had crossed 5.7 million, compared with around 3.9 million last year and approximately 1.8 to 1.9 million in 2022.
He said revenue mobilization would continue alongside taxpayer facilitation and efforts to build greater trust, with digitalization and data playing an increasing role in strengthening tax administration. He emphasized that stronger and more efficient revenue collection was essential for maintaining fiscal stability and creating greater space for productive investment.
On access to finance, Senator Muhammad Aurangzeb highlighted efforts to expand financing opportunities for SMEs, agriculture, housing and underserved segments. Referring to the Prime Minister’s Apna Ghar Programme, he said around Rs60 billion had already been financed, while banks had approved a substantial additional financing pipeline. He emphasized that the challenge was increasingly shifting from the availability of financing towards strengthening the supply side and ensuring that available credit translated into construction, investment, employment and broader economic activity.
The Finance Minister also emphasized the need to deepen Pakistan’s capital markets so that domestic savings could increasingly be channelled into productive investment, including infrastructure, housing, privatisation and private-sector expansion. He said the Government was working to strengthen the broader capital-market ecosystem and create greater avenues for capital formation and investment.
He reiterated the Government’s objective of moving Pakistan’s bilateral economic relationships from aid towards trade and investment flows, while positioning the country for the New Economy. He highlighted opportunities in digitalization, blockchain, Web 3.0 and emerging technologies, noting their potential to support investment, innovation, exports and employment.
During the interaction, OICCI representatives shared their perspectives on the business and investment environment and discussed opportunities for greater participation by international investors. The discussion also covered measures to further improve the business environment, facilitate investment and strengthen private sector-led growth.
Concluding, Senator Muhammad Aurangzeb said Pakistan’s economic trajectory would increasingly depend on the private sector’s ability to invest, innovate, create employment and expand productive capacity, while the Government would focus on policy continuity, facilitation and sound economic governance.
He reaffirmed the Government’s resolve to bring permanence to macroeconomic stability, strengthen investor confidence and create an enabling environment for sustainable, inclusive and private sector-led growth.
