Finance Minister Muhammad Aurangzeb on Sunday emphasized that Pakistan is pursuing a stable, export-led and investment-driven economy through a series of ongoing reforms, as he welcomed the International Monetary Fund (IMF)’s Global Diagnostic and Corruption (GDC) Report as a catalyst for accelerating the process.
Addressing a press conference, he said agriculture, large-scale manufacturing, remittances, the “new economy,” and private investment would play central roles in building a more resilient and inclusive Pakistan. However, he added, care must be taken to avoid a “gold rush” to economic growth that could prove unsustainable in the long run.
“We don’t have to go into gold rush,” he said. “We have to make economic growth sustainable and for that we have to keep a close eye on balance of payments and current account,” he continued, noting it was “easy” to pump liquidity and achieve consumption-led growth rather than the necessary export-driven growth. He said last week’s abolition of 0.25% Export Development Surcharge after almost four decades was a key demonstration of this commitment.
Coupled with reforms to strengthen the governance of the Export Development Fund (EDF), the policy direction centers on empowering exporters, removing outdated distortions, and enabling the private sector to drive economic expansion, he said.
On the GCD report, the minister said it was part of a broader agenda seeking institutional strengthening. He said the government had requested, and helped develop, the report through more than 100 meetings, adding it prioritized 15 key reforms related to taxation, governance, public financial management, and procurement that were already under implementation phase.
He stressed that Pakistan’s structural challenges have built up over decades, and that institutional reform is essential for sustaining economic stability. He described the report not as criticism, but as a catalyst for accelerating long-overdue reforms.
On current metrics, he said export performance had strengthened, with overall exports rising 5% and I.T. services exports growing by over 20% year-on-year. He said the I.T. sector had recorded back-to-back monthly records in September and October, establishing itself as a critical pillar of the “new economy.” He said the announcement of U.S. Exim Bank joining the $3.5 billion Reko Diq syndication, led by IFC had helped achieve financial close for the project following an end to U.S.-government shutdown. He said the financial close would represent a transformational investment, generating an estimated $2.8-2.9 billion in annual exports once production commences.
He said the government aimed to launch the inaugural panda bond in the Chinese market either this month or no later than the Chinese New Year. Remittances remain strong, he said, estimated to surpass $41 billion this year from last year’s $38 billion. He said that from July-October 2025, cement production had risen 16%; fertilizer production 9%; petroleum products 4%; automobile production 31%; and mobile phone manufacturing 26%. Large-Scale Manufacturing grew 4.1% year-on-year during the first quarter, he noted, an important reversal from last year’s contraction.
NFC Award
He hoped the upcoming NFC meeting to lead to an outcome in the spirit of “Pakistan First,” which had enabled the National Fiscal Pact and introduced agriculture income tax through provincial legislations. “I look forward to good and constructive discussions with provincial finance ministers and chief ministers” on Dec. 4, he said.
He noted there was no dispute that as a nation the country required not only structural but institutional reforms as highlighted in the GCD report. He said the Terms of Reference for the NFC meeting had spelled out that the federation and provinces would share their positions and take the process forward after listing to each other. He said all territories must contribute to enhance revenue mobilization. “You cannot run the country on 8-10% tax-to-GDP ratio,” he said.
To questions, he reiterated the government’s commitment to expanding the tax base, reducing leakages, improving compliance, and ensuring fairness between the formal and informal sectors. He said durable reform in areas such as the sugar sector required full deregulation and the government’s withdrawal from market-influencing roles.
He said there was renewed global investor interest in Pakistan, referring to commitments and expansions from major international firms such as Aramco, Wafi, Gunvor, Turkish Petroleum, Barrick Gold, Citizen Metals, Nova Minerals, BYD, Chery, NWTN Motors, Abu Dhabi Ports, and Google.