Finance Minister Signals Confidence in Pakistan’s Reform-Driven Growth Path

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Finance Minister Muhammad Aurangzeb has declared Pakistan’s intent to stay the course on economic reform and market stability, stating the country is prepared to “carry forward the journey of resilience, reform, and recovery.” Speaking during a virtual engagement with Moody’s Ratings Agency on Tuesday, Aurangzeb reaffirmed the government’s commitment to structural improvements that underpin long-term, inclusive, and export-oriented growth.

Addressing the session from the Finance Division in Islamabad, the minister was joined by Minister of State for Finance Bilal Azhar Kayani, State Bank of Pakistan (SBP) Governor Jameel Ahmad, and senior officials. Aurangzeb laid out the fiscal and macroeconomic strides achieved in recent months, including a significant reduction in inflation, a lowered policy rate, a stabilised exchange rate, and a return to current account surplus. Foreign exchange reserves exceeding $14 billion, along with a rebound in exports and remittances, were presented as key indicators of renewed investor confidence and a more resilient economic base.

The Finance Minister emphasized that these gains are supported by structural reforms that are not just cosmetic. Prudent fiscal discipline in the newly announced federal budget, trade and tariff liberalization to spur exports, and a push to rationalize government spending were cited as core pillars of the reform agenda. He also highlighted Pakistan’s active discussions with the United States for preferential tariff access, a move that could open vital markets for domestic industries and further bolster foreign currency inflows. According to Aurangzeb, these efforts are under direct oversight of the Prime Minister, particularly in the area of tax reform, where the aim is to lift the tax-to-GDP (Gross Domestic Product) ratio to 13–13.5 percent through digital systems, enforcement, and compliance. Further outlining Pakistan’s re-engagement with global markets, Aurangzeb pointed to the successful arrangement of $1 billion in commercial financing from the Middle East, plans to launch the country’s first Panda bond (Chinese yuan-denominated debt), and exploration of Eurobond issuance as Pakistan’s credit outlook improves. In keeping with a market-oriented, center-right economic stance, the minister stressed the importance of private capital, disciplined governance, and global financial integration. As Pakistan charts a course beyond short-term bailouts, Aurangzeb expressed optimism that international ratings agencies will acknowledge this reform momentum strengthening the country’s case for improved credit terms and deeper integration into global trade and capital flows.