ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb has called upon the private sector to step forward while the government will facilitate the economic turnaround.
He made the remarks while addressing an event in Islamabad on Saturday. He added the foreign exchange reserves are improving, providing space to the government.
The minister said a better system for loans is needed and also stressed timely intervention to prevent notable businesses from going bankrupt, Radio Pakistan reported.
He expressed confidence in the positive direction of Pakistan’s economy, highlighting the influx of investments and the solid performance of existing investments.
Speaking to journalists after a meeting with the Overseas Investors Chamber of Commerce and Industry (OICCI), Finance Minister Aurangzeb discussed several key issues, including structural reforms, taxation, energy, state-owned enterprises (SOEs), and the privatisation agenda. He emphasised the importance of collaboration with existing investors to foster economic growth.
Aurangzeb stressed that the government’s role is to provide a stable and consistent policy framework, which he identified as essential for attracting further investment. He also urged the private sector to include export components in their investment strategies, highlighting the critical need for export-driven growth.
Acknowledging Pakistan’s import-dependent economy, the finance minister highlighted the challenges posed by the balance of payments issue. He emphasised the need for export-led growth to break the boom-and-bust cycle and achieve sustained economic growth of 4-6%.
“Every entity in the country must contribute to exports,” he added, noting the global demand for “Made in Pakistan” products.
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On political stability, the minister reiterated that it is a fundamental factor in attracting investments. He mentioned that political unrest and sit-ins were causing a daily loss of Rs 190 billion. He called for greater political tolerance and consensus across administrations to ensure a stable economy, adding, “We must all be on the same page for a stable Pakistan.”
Regarding taxation, the minister revealed ongoing discussions with the Sindh government on agriculture tax and confirmed that Punjab, Khyber-Pakhtunkhwa, and Balochistan were also working on it.
Finally, addressing inflation, the minister revealed that the Economic Coordination Committee (ECC) had introduced a Standard Item Agenda aimed at controlling the prices of essential goods, including pulses and petroleum products.
