Finance Minister sees Pakistan’s economy growing 4pc this year

Pakistan’s economy is expected to grow by around 4 per cent in the current fiscal year, according to Finance Minister Muhammad Aurangzeb, who pointed to improving economic indicators as signs of a gradual recovery.

Speaking at the EU-Pakistan High-Level Business Forum in Islamabad, the minister highlighted progress across key sectors, noting that the country’s macroeconomic position has strengthened compared to last year. He cited a current account surplus exceeding $1 billion in March, rising remittances, and steady growth in IT exports as positive developments supporting the outlook.

The forum, organised by the European Union in collaboration with Pakistan, brought together policymakers, investors, and business leaders to explore opportunities for deeper economic engagement. With the EU remaining Pakistan’s largest export destination, discussions focused on expanding cooperation beyond trade into areas such as investment, technology, and sustainable development.

Officials also expressed optimism about foreign exchange reserves, which are projected to reach around $18 billion by the end of June, offering a stable import cover. Meanwhile, other institutions like the Asian Development Bank have also upgraded Pakistan’s growth forecast, reinforcing confidence in the country’s economic trajectory.

Prime Minister Shehbaz Sharif separately met European officials and business representatives, reiterating the importance of strengthening trade and investment ties.

He reaffirmed Pakistan’s commitment to economic stability despite global and regional challenges, while both sides acknowledged the potential for expanded cooperation across sectors including energy, IT, and infrastructure.