Finance Minister Muhammad Aurangzeb on Wednesday emphasized that the incumbent government does not want to pursue unsustainable economic growth, adding the focus is on moving toward steady, sustainable growth.
Addressing an economic dialogue organized by the Pakistan Business Council (PBC), he said the government wants to achieve growth that breaks the country’s recurring boom-and-bust cycles. He noted that growth itself was not a matter of concern, but the challenge was maintaining momentum once it was achieved. Previous attempts, he recalled, proved unsustainable.
Export-led growth, he maintained, is the only path to stronger performance.
Aurangzeb said the government wishes to revive industry, adding an upcoming industrial policy would place special emphasis on this. He hoped the country could achieve 3.5% GDP growth in the current fiscal year, with an expansion to 4% over the next 2-3 years. In the medium-term, he said, the country had the potential to achieve 6-7% growth so long as the positive momentum in agriculture, manufacturing and services continues.
On remittances, the finance minister said the government expected them to reach around $41 billion. He explained that easing monetary conditions would help reduce financing costs, urging corporate leaders to diversify beyond bank borrowing and make greater use of capital markets for longer-tenor, more competitive financing.
Aurangzeb stressed the government is committed to addressing structural issues in taxation and energy. “We are going to hold the first tax advisory council meeting on Thursday. The council will now reach out to businesses for input ahead of the next budget,” he said.
The minister also noted foreign investors’ concerns regarding security, assuring that national security is non-negotiable. The basic requirements for attracting foreign investment, he explained, are security, macroeconomic stability, and smooth profit repatriation. He said Pakistan has seen renewed interest from several global companies such as Aramco, and firms from Turkiye and Abu Dhabi. These companies, he said, have begun investing in energy, mining, technology, logistics and automotive sectors. He described this as a sign of growing confidence in Pakistan’s economic direction.
He said Pakistan is preparing for its first Panda Bond issuance, expected before the Chinese New Year.