LONDON: Finance Minister Muhammad Aurangzeb has said Pakistan is not only transforming, but it is open for business and investment.
He expressed these views while speaking at meeting held with a group of leading global investors in London today.
The Finance Minister shed light in detail on Pakistan’s economic outlook, reform agenda, and future investment prospects.
He also provided a comprehensive overview of Pakistan’s macroeconomic recovery, citing key achievements including a primary budget surplus of 3.6 trillion rupees, the current account surplus, reduced inflation to to zero point three percent, and a drop in debt-to-GDP ratio from seventy-five percent to sixty-five percent.
Muhammad Aurangzeb said these indicators have not only stabilized the economy, but have also led to improved sovereign credit ratings and renewed confidence from multilateral and bilateral partners.
He emphasized that Pakistan is firmly staying the course on reforms, aiming to transition from a consumption-led to a sustainable, export- and productivity-led growth model.
The Minister highlighted new tax reforms aimed at bringing real estate, wholesale, retail, and agriculture sectors into the formal net, while ensuring end-to-end digitalization of the tax authority to minimize human discretion and reduce corruption.
He also outlined the government’s ambitious sectoral diversification strategy, citing the minerals conference and the landmark copper agreement expected to contribute 2.8 billion dollars annually to exports by the year 2028.
He further briefed the investors on Pakistan’s plan to issue a Panda bond as part of its active debt management strategy, and on future steps under the Medium-Term Debt Management Strategy.
During the meeting, a leading world investor, Oliver Williams, welcomed the clarity and credibility of Pakistan’s macroeconomic direction and expressed a strong interest in the country’s upcoming bond issuance plans.
Another investor, Maud Le Moine of Lion’s Head Global Partners – a firm specializing in emerging market advisory – offered targeted technical support to help Pakistan strengthen its investor communications, enhance credit rating engagement, and implement energy sector modeling.
The Finance Minister also held a meeting with senior representatives of British American Tobacco company in London today.
During the meeting, he discussed with them the long-standing concerns around illicit trade, counterfeit tobacco products, and the implications of Pakistan’s current excise duty regime.
The British American Tobacco company shared its perspective on the growing challenge of smuggling and counterfeiting in Pakistan’s tobacco sector.
The company emphasized that the high and uneven excise duty structure has unintentionally incentivized illicit operators, eroding the formal market and depriving the government of significant tax revenues.
The British American Tobacco representatives also proposed that a rationalized and predictable duty scheme would help curb illicit trade, draw consumers back to legal channels, and generate higher tax revenues for the government over time.
They stressed that such a framework would mainstream the sector, support legitimate businesses, and enhance regulatory oversight.
Speaking on the occasion, Finance Minister Muhammad Aurangzeb acknowledged the issue as a legitimate concern and assured the British American Tobacco company that the matter would be carefully reviewed during the upcoming federal budget process.
He highlighted the government’s broader commitment to revenue mobilization, formalization of sectors, and effective enforcement against illicit trade.
The Minister reiterated that reforms in the taxation structure are being guided by the principles of fairness, efficiency, and economic inclusion.
