Islamabad (HRNW)- Federal Finance Minister Senator Muhammad Aurangzeb has said Pakistan is in a stronger economic position than before and that the improvement in economic conditions is continuing into the current fiscal year.
Addressing the Leaders in Islamabad Business Summit, Aurangzeb said output in large-scale industries has improved, remittances have strengthened the current account, and IT exports are continuing to rise. He said Pakistan is moving toward a sustainable, export-led growth model.
The Finance Minister said the country is shifting from an aid-based relationship toward one centered on trade and investment. He identified stronger bilateral trade and investment ties, investor mobilization, and expanded commercial relations as key government priorities.
Aurangzeb said exporters are receiving refinancing at 4.5 percent, compared with the 11.5 percent policy rate, while measures are being taken to improve the competitiveness of traditional export sectors. He said Pakistan’s GDP growth was approximately 3.7 percent during the previous fiscal year and that growth momentum was continuing.
According to the State Bank’s projection cited by the minister, GDP growth is expected to remain between 3.5 percent and 4.5 percent during the current fiscal year.
Separately, the Ministry of Finance said a Pakistan Investment Roundtable was held in London under the auspices of the Pakistan High Commission, bringing together London-based investors and representatives of global financial institutions. Aurangzeb attended the event as chief guest, alongside State Bank Governor Jameel Ahmad, Finance Minister’s Adviser Khurram Shahzad, and Pakistan’s High Commissioner to the UK, Moazzam Ahmad Khan.
Aurangzeb said the government is pursuing reforms to stabilize the economy, strengthen the private sector, and improve fiscal and institutional performance. He cited a narrowing budget deficit, increased government revenue, privatization efforts, reforms in state-owned enterprises, and changes in the energy sector as part of the broader reform process.
The minister also emphasized the importance of expanding the tax base, enforcing tax laws, improving transparency, and facilitating businesses. He said discretionary powers of tax authorities had been eliminated and stated that no special tax concessions were being provided.
Aurangzeb further clarified that no new additional taxes had been imposed on the salaried class. He said the economy had faced challenges from last year’s nationwide floods and the recent conflict in the Middle East, which also contributed to higher global oil prices.
According to the Ministry of Finance, Pakistan has completed all IMF reviews on schedule and its credit rating has improved three times. The Finance Minister also held discussions with representatives of international financial institutions on the economic outlook, investment climate, and opportunities across various sectors.
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