Pakistan’s economy on right track despite challenges: finance minister

ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Wednesday that Pakistan’s economy is on the right track despite challenging conditions.

He said that they remained focused on reducing fiscal and current account deficits while strengthening capital markets.

Speaking at a Capital Market Development Fund signing ceremony in Islamabad, Aurangzeb said that regional tensions required a cautious policy approach, while stressing that Pakistan’s leadership was actively engaged in efforts to reduce regional instability.

“Our focus remains on improving macroeconomic indicators, and despite difficult circumstances the economy is moving in the right direction,” he said, according to a statement.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb addresses the signing ceremony of the Capital Market Development Fund, reaffirming the government’s commitment to economic stability, sustainable growth, and financial sector reforms. Finance Minister emphasized… pic.twitter.com/XNH7AukL15

— Ministry of Finance, Government of Pakistan (@Financegovpk) May 6, 2026

He said Pakistan’s stock market had remained stable despite regional uncertainty, adding that strengthening capital markets was critical for broader economic development and self-reliance.

Aurangzeb said greater reliance on domestic resources was essential for economic stability, adding that commercial decisions must be taken independently and in the national interest. He also stressed the need to shift towards alternative energy sources in light of regional developments.

The finance minister said efforts were underway to mobilise domestic savings and promote local investment, describing self-reliance as the only sustainable path to economic stability.

He said the Securities and Exchange Commission of Pakistan (SECP) had a key role in improving investor awareness and facilitating market access, adding that legal and regulatory reforms would be supported by the government.

Aurangzeb also highlighted the importance of engaging younger investors, saying “Generation Z is the future” and must be empowered and integrated into financial markets.

Separately, SECP Chairman Akif Saeed said Pakistan’s capital market remained underdeveloped, with less than 1% of the population currently participating as investors.

He said efforts were underway to expand the investor base to 2.5 million, supported by a broader strategy to improve awareness, inclusion and access to financial markets.

Saeed said joint platforms between SECP and market institutions had been formed to promote investment, while awareness campaigns and regulatory reforms were being advanced to attract new investors, particularly youth.

He said improving financial inclusion and investor confidence remained key priorities, adding that Pakistan’s markets offered significant investment opportunities that needed greater public participation.