ISLAMABAD: Finance Minister Muhammad Aurangzeb has outlined a major shift in Pakistan’s economic strategy, moving away from the historically volatile pursuit of rapid five to six per cent GDP growth.
Speaking at a two-day economic dialogue hosted by the Pakistan Business Council (PBC), he stressed that the country can no longer afford short-lived growth spurts that ultimately trigger instability.
He explained that the challenge is not achieving growth but sustaining it over time. Pakistan’s previous economic cycles, he noted, repeatedly collapsed due to structural weaknesses. The minister emphasised that the new economic vision centres on steady, sustainable progress designed to break the boom-and-bust pattern that has plagued the country for decades.
Aurangzeb reiterated that export-led growth remains the only realistic path forward, warning against repeating earlier mistakes. Without naming the country, he pointed to a neighbouring economy nearing 8pc growth but still battling high unemployment, highlighting Pakistan’s focus on equitable and inclusive development.
Discussing sectoral reforms, he said the government aims to revive industrialisation through an upcoming industrial policy. He expressed confidence in achieving 3.5pc GDP growth this fiscal year, projecting growth of 4pc in the next few years, and potentially reaching 6-7pc over the medium term if momentum continues across agriculture, manufacturing and services.
The minister also shared updates on external inflows, noting strong remittances through formal channels, including steady performance of the Roshan Digital Account. Remittances for the year are expected to reach $41 billion. He encouraged businesses to diversify financing channels and utilise capital markets for longer-tenure, competitive options.
He reaffirmed the government’s commitment to tax and energy reforms, announcing the first meeting of the tax advisory council. Addressing investor concerns, he stressed that national security, macroeconomic stability and smooth profit repatriation remain top priorities for attracting global investment.
Aurangzeb also confirmed Pakistan’s readiness for its first Panda Bond issuance and noted rising interest from global firms in key sectors. PBC chairperson Dr Zeelaf Munir and SAPM Haroon Akhtar also stressed the need for long-term reform, industrial development and stronger export performance to ensure national stability.
