Pakistan, UK agree to deepen economic cooperation and reform collaboration

A meeting between Pakistan’s Finance Minister Muhammad Aurangzeb and UK Parliamentary Under-Secretary Hamish Falconer was held at the Finance Division in Islamabad on June 15, where both sides discussed strengthening bilateral economic cooperation and reviewing the regional situation.

The talks focused on Pakistan’s macroeconomic outlook, ongoing structural reforms, and the government’s fiscal priorities. The finance minister briefed the visiting British delegation on the country’s economic reform agenda and highlighted the direction outlined in the federal budget, describing it as aligned with broader stabilisation and growth objectives.

He reiterated that the government remains committed to economic stability, recovery, and long-term sustainable development through continued reform implementation.

Economic reforms and fiscal priorities

Aurangzeb stressed Pakistan is actively pursuing financial and institutional reforms aimed at improving revenue mobilisation, strengthening tax compliance, and eliminating leakages in the system. He said efforts are underway to modernise the tax structure through greater use of technology, data integration, and digital invoicing systems.

According to the finance minister, the reform programme is not only focused on increasing revenues but also on improving transparency and rebuilding trust in public financial management. He added that the government is working to reduce discretionary powers, improve governance, and enhance efficiency in public sector operations.

He further noted that initiatives such as privatisation, rightsizing of government institutions, and better control of public expenditure are key components of the broader reform strategy. The expansion of digital governance systems and targeted social protection mechanisms also remains part of the ongoing agenda.

Regional stability and economic outlook

During the meeting, Aurangzeb also briefed the British side on Pakistan’s perspective regarding regional developments. He said Pakistan has consistently supported dialogue, de-escalation, and peaceful resolution of disputes, and has played an active role in promoting regional stability.

He observed that prolonged instability in the region can negatively impact investor confidence, energy markets, and global supply chains. The finance minister added that Pakistan’s economic planning has incorporated external risks, including geopolitical uncertainties, into its fiscal and growth projections.

Referring to recent developments between the United States and Iran, he said improved diplomatic engagement has the potential to strengthen regional stability. A more stable environment, he added, would be beneficial for investment, trade, and broader economic activity.

UK support and future cooperation

The British minister reportedly appreciated the scale and ambition of Pakistan’s reform programme and emphasised the importance of continuity in policy implementation and institutional strengthening.

The UK side reiterated its interest in maintaining and further developing economic ties with Pakistan. Both sides agreed on the importance of continued collaboration to promote sustainable development and regional stability.

The meeting concluded with a mutual understanding to deepen engagement across economic, institutional, and development-related areas in the coming months.