Islamabad Dec 24: Federal Minister for Finance Senator Muhammad Aurangzeb has said that Pakistan’s economy has moved beyond the stabilization phase and is now heading toward export-led growth, placing the country on a path to sustainable long-term development.
In an interview with the American publication USA Today, the finance minister stated that Pakistan has reached a critical economic turning point. He said that continued economic stability, structural reforms, and consistent policies are restoring confidence at both domestic and international levels. According to him, the economy is transitioning from stabilization to a growth model driven by exports.
Senator Aurangzeb noted that new opportunities are emerging for local and foreign investors, while Pakistan has begun the current fiscal year on stronger economic foundations. He highlighted that the country has achieved both a primary budget surplus and a current account surplus, calling it a clear sign of breaking free from the cycle of persistent deficits.
He attributed much of the recent improvement to a significant rise in remittances. Inflation, which had peaked at 38 percent, has now declined to single digits, while foreign exchange reserves have surpassed $14.5 billion. Stability in the exchange rate, he added, has further strengthened investor confidence.
The finance minister emphasized that while economic stability is essential, sustainable growth remains the real challenge. He acknowledged that last fiscal year’s 2.7 percent economic growth was positive but insufficient to meet the needs of Pakistan’s rapidly growing population. As a result, the government is shifting away from a consumption- and debt-driven model toward an export-oriented growth strategy.
He said the current budget includes key reforms such as tax reforms, energy sector improvements, restructuring of state-owned enterprises, and tariff reforms, aimed at dismantling decades-old protectionist policies and enhancing global competitiveness.
Senator Aurangzeb further stated that Pakistan is aligning its economic strategy with changing global demand patterns. He highlighted that IT exports have exceeded $4 billion and could double within five years if policy continuity is maintained. Efforts are also underway to simplify the tax system for exporters and reduce administrative barriers.