LONDON: Pakistan is developing a National Private Equity Framework to mobilize institutional capital into businesses and projects as the government seeks to expand the role of private investment in the country’s next phase of economic growth, Finance Minister Muhammad Aurangzeb said Friday.
Aurangzeb made the announcement while addressing a session titled “Fireside Chat: Pakistan: External Shocks Remain Manageable” at the J.P. Morgan Emerging and Frontier Markets Opportunities Conference in London, according to an official statement.
The conference drew strong interest from leading global institutional investors and money managers, with 55 global investment funds meeting the Pakistani delegation through one-on-one sessions and a full investor session, the statement said. The sessions, held over the course of a day, focused on Pakistan’s future economic direction, investment opportunities and the sustainability of its ongoing economic transformation.
Amin Khowaja, chief executive officer and country head of J.P. Morgan Pakistan, also attended the meetings.
Outlining the government’s economic direction, Aurangzeb identified six key priorities: bringing permanence to macroeconomic stability and strengthening fiscal and external shock-absorbing capacity; shifting from stabilization to sustainable, responsible growth driven by productivity, investment and exports; maintaining the pace of structural reforms; moving from an aid-dependent model to one built on trade and investment; expanding access to finance for people and communities; and positioning Pakistan for the digital economy, including blockchain and Web 3.0.
Aurangzeb said that over the past three years, Pakistan’s primary task had been to restore macroeconomic stability and rebuild credibility.
State Bank of Pakistan Governor Jameel Ahmad, also speaking at the event, pointed to a strengthening of the country’s external position, citing improved foreign exchange reserves, better-quality reserve accumulation, rising remittance inflows and stronger external-sector fundamentals.
Ahmad also cited growing contributions from Roshan Digital Account flows, external-sector reforms and strengthening financial-sector fundamentals. He noted progress in containing inflation in recent years, saying those developments had bolstered macroeconomic stability and strengthened the foundation for sustainable growth and investment.
Aurangzeb said the government’s goal was to make that stability durable and use it as a foundation for a different growth model — one driven increasingly by investment, productivity, exports and private-sector activity rather than short-term, consumption-led expansion.
He pointed to improvements in Pakistan’s sovereign debt position, saying the government had pursued active liability management, extended domestic debt maturities and reduced refinancing risks. Those steps, combined with fiscal consolidation, were strengthening the country’s sovereign balance sheet and boosting confidence in its economic outlook, he said.
Aurangzeb said Pakistan had also regained access to international capital markets through a range of diversified instruments and investor pools.
He highlighted what he described as significant potential for deeper capital formation in Pakistan, saying the government was working to strengthen equity and corporate debt markets, broaden investor participation, increase initial public offering activity and improve market infrastructure.
Greater foreign capital participation, along with development of Islamic finance and sukuk markets, could further expand channels for long-term investment, he said. He also outlined reforms intended to create more room for private capital and reduce the state’s role in commercial activity.
Aurangzeb said access to finance was being expanded across small and medium-sized enterprises, agriculture and housing so that macroeconomic stability could translate into greater credit, investment and productive activity. He said public balance sheets alone could not finance Pakistan’s next phase of growth and that private capital would need to play a larger role going forward.
On external economic engagement, Aurangzeb said Pakistan was moving away from its traditional reliance on foreign aid toward stronger trade and investment flows. While acknowledging the importance of bilateral partnerships, he stressed the need to deepen trade in both goods and services and attract more long-term investment through mutually beneficial economic relationships.
Aurangzeb said Pakistan’s investment case was no longer solely about overcoming immediate economic pressures but about the reform and re-rating potential that lies ahead. He reaffirmed the government’s commitment to fiscal discipline, external sustainability and continued reform momentum, while creating more space for both domestic and international private capital.
