Pakistan at ‘turning point’ toward stability and growth: finance minister

ISLAMABAD: Finance Minister Muhammad Aurangzeb has said that Pakistan has reached a critical turning point where economic stability, continued reforms and policy continuity have restored confidence.

In an interview with the US newspaper USA Today, the finance minister said that this progress is creating new opportunities for domestic and international investors, and Pakistan is positioning itself for sustainable, long-term economic growth.

He said this transition has been made possible due to macroeconomic stability, declining inflation and improvement in external accounts.

The government is promoting export- and productivity-led growth by tapping emerging opportunities in sectors such as agriculture, mining, technology and climate resilience.

Aurangzeb said that for the first time in many years, Pakistan has achieved both a primary fiscal surplus and a current account surplus — a clear sign of breaking out of the cycle of persistent deficits.

According to him, stronger remittances have played a key role in this improvement, while inflation has come down from a peak of 38 per cent to single digits.

He said that foreign exchange reserves have exceeded 14.5 billion dollars, which are sufficient for nearly two-and-a-half months of imports, while stability in the exchange rate has helped restore investor confidence.

The finance minister stressed that although macroeconomic stability is a strong foundation, sustainable growth still remains the biggest challenge.

He said that economic growth of 2.7 per cent in the previous fiscal year was positive but insufficient to meet the needs of a rapidly growing population.

He said Pakistan is deliberately moving away from a consumption- and debt-driven model toward an export-led strategy.

The current budget includes structural reforms in taxation, energy prices and state-owned enterprises.

According to Aurangzeb, Pakistan is aligning its economic strategy with shifts in global demand, and IT services, textiles and agricultural exports have been identified as sectors with significant potential.

He said steps are also being taken to simplify the tax system for exporters and reduce bureaucratic hurdles to enhance long-term productivity and competitiveness.

Speaking about the broader reform agenda, the finance minister said that the privatisation of state-owned enterprises, revenue liberalisation and restructuring of the energy sector are aimed at addressing deep-rooted flaws that have long burdened public finances.

He said these reforms are part of a long-term vision aligned with the World Bank’s assessment of Pakistan’s potential “East Asia moment.”

The finance minister also referred to the ten-year Country Partnership Framework with the World Bank — the first of its kind — which focuses not only on economic reforms but also on climate change and population management.

He stressed that Pakistan’s future does not depend solely on financial indicators but on addressing existential challenges such as population growth, climate change, child malnutrition, educational backwardness and the exclusion of girls from education.

Aurangzeb said that women’s education and participation in the workforce is not only a social necessity but an economic imperative.

According to the finance minister, the regulatory framework is being modernised to encourage innovation and promote foreign investment — particularly from the United States — while technology has been termed a major game changer for Pakistan.

At the end of the interview, he invited global investors and partners to connect with Pakistan through trade, investment and cooperation, saying the country is moving away from a crisis narrative toward opportunity and transformation, with significant prospects as an emerging market standing at the threshold of sustainable growth.