Pakistan shifts from stabilisation to export-led growth, says finance minister

[Meengla]

The US did NOT occupy Pakistan so why in the world would Pakistan stop talking and trading with them or their allies? Last time I checked, Pakistan was not responsible for Afghanistan, but only our interests. When Americans attacked the Salala post, we stopped their entire supply corridor for months until we got an apology from the highest levels of the USG (I.e., SoS Clinton) and no such attack ever occurred again.

Right!! Imagine the real puppets like Jordan doing that to America. Pakistan has never ever compromised on its core interests and whatever accommodations given to America by Pakistan is because of Pakistan's trade/commerce vital concerns. Look at where most of Pakistan's exports go. I am sure you know that and saner Pakistanis here know that but some 'Real Freedom' champions expat Pakistanis either don't know that or ignore those vital interests.

What gets rebranded in the UAE as the source of export is a game that is played but it comes nowhere close to the actual bilateral trade potential that can be had. You could lump the smuggling across the Pak-Afg border in the same category that it cannot be 100% locked down. However, open trade and even transit trade through Afghanistan is a no go till these Afghan takfiri Taliban mend their ways.

It is to be noted that for the first time the UAE's leader MBZ is making an official visit to Pakistan; every Pakistani should be happy over the visit and watch closely what comes out of the visit starting 26 December!!

As for Afghanistan-Pakistan trade: I could be wrong but I think it were the Afghan Taliban themselves who foolishly severed the trade a few weeks ago and if one watches yesterday's Kamran Yusuf video, the losses to Afghanistan are really bad. I am not happy about the sufferings of average Afghans; I am quite sad. But the decision was made by the Afghan Taliban. But the repeated pattern of dishonesty by some Pakistanis of a certain political bent continues here.

 

[Asif]

Pakistan shifts from stabilisation to export-led growth, says finance minister​

Aurangzeb says reforms, easing inflation and stronger balances are restoring investor confidence

Web Desk
December 24, 2025

View attachment 166884
Finance Minister Muhammad Aurangzeb speaks during a Reuters interview at the 2025 annual IMF/World Bank Spring Meetings in Washington, DC, US, April 25, 2025. Photo: Reuters/ File

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb said Pakistan has reached a critical turning point, with macroeconomic stability, sustained reforms and policy continuity restoring confidence and shifting the economy toward export-led growth.

He said the transition is opening new opportunities for domestic and global investors and positioning the country for sustainable, long-term economic growth.

Aurangzeb expressed these views in a wide-ranging interview conducted a few weeks ago and published this week by USA Today. The interview appeared in a special 16-page publication titled “Pakistan Special Report.”

The report includes commentary, articles and expert views on Pakistan’s economy, investment opportunities and key policy priorities.

In the interview, Aurangzeb said Pakistan has entered fiscal year 2025 from a position of renewed strength. He cited macroeconomic stability, improving external balances and a firm commitment to structural reform.

He said that for the first time in several years, Pakistan has achieved both a primary fiscal surplus and a current account surplus. He described this as a decisive break from a cycle of recurring deficits.

Strong remittance inflows, he said, played a key role in the turnaround. Inflation has fallen sharply from a peak of 38% to single-digit levels.

Foreign exchange reserves have risen to more than $14.5 billion, providing about two and a half months of import cover. The exchange rate has remained stable, helping restore investor confidence.

Aurangzeb said macroeconomic stabilisation is only the foundation and that sustainable growth remains the main challenge. He noted that last year’s economic growth of 2.7%, while positive, is not enough to meet the needs of a rapidly growing population.

He said Pakistan is moving away from a consumption- and debt-driven growth model toward an export-led strategy. The current budget, he said, reflects this shift.

Read: Pakistan eyes January Panda Bond debut

Aurangzeb pointed to structural reforms in taxation, energy pricing and state-owned enterprises. He also highlighted tariff reforms aimed at dismantling decades of protectionism and improving global competitiveness.

He said Pakistan is aligning its strategy with changing global demand. He identified information technology services, textiles and agricultural exports as key growth areas.

Aurangzeb said IT exports have crossed $4 billion and could double within five years with regulatory clarity and better infrastructure. He said steps are being taken to simplify tax regimes for exporters and reduce bureaucratic hurdles.

On broader reforms, he said privatisation of state-owned enterprises, tariff liberalisation and energy sector restructuring aim to fix long-standing inefficiencies that have burdened public finances.

He said the reforms reflect a longer-term vision, echoing the World Bank’s assessment of Pakistan’s potential “East Asia moment.”

Aurangzeb referred to the World Bank’s 10-year Country Partnership Framework, the first of its kind for Pakistan. He said it focuses on economic reform, climate resilience and population management.

On climate risks, he said Pakistan is working with multilateral partners to improve preparedness for more frequent floods and droughts.

Read More: IMF staff deal reached, investment-led growth now priority: FinMin

He acknowledged ongoing risks, including global commodity price shocks, external debt pressures and political uncertainty. Still, he said the government remains committed to reforms despite geopolitical and domestic challenges.

Aurangzeb said discipline, consistency and international cooperation are essential to protecting recent gains.

Highlighting investment opportunities, he pointed to agriculture, minerals and mining, and the digital economy as priority sectors.

He cited Pakistan’s agricultural potential, the strategic importance of the Tethyan Copper Belt in Balochistan, and growing interest in data centres, artificial intelligence and digital services.

Aurangzeb said regulatory frameworks are being updated to support innovation and attract foreign investment, especially from the United States. He described technological change as a major game-changer for Pakistan.

He invited global investors and partners to engage with Pakistan through trade, investment and collaboration.

He said Pakistan is moving from a narrative of crisis management to one of opportunity and transformation, driven by reform momentum, economic potential and its natural strengths.

export led growth... hmmm.. wht is he smoking?
in which sector are we self sufficient or near to self sufficient??
even textile sector is in a pit due to high energy cost, low cotton production and low investor confidence. Our Electronic, electrical, metallurgy, hardware, precision equipment, chemical, pharmaceutical, synthetic fiber, plastic, etc etc. industry is based on imported raw material and we rarely meet the latest global standards.
forget industry, our chemical / fertilizer plants have to import specialist welders for safety reason as less than a dozen welds fail in radiological examination later. I need not even mention this ratio if it was done by local contractors.
point being our base is non existent or wrong. we need skilled manpower along with specialised industrial units. This cant b achieved in less than a decade long concerted efforts.

 

[SoulSpokesman]

@newb3e sb

praising the FM "meri jind meri jaan"

Why do you keep referring to FM sahib as "Meri jind meri jaan"? Is this a derogatory reference in Punjabi?

Regards

 

[Goenitz]

The US did NOT occupy Pakistan so why in the world would Pakistan stop talking and trading with them or their allies? Last time I checked, Pakistan was not responsible for Afghanistan, but only our interests. When Americans attacked the Salala post, we stopped their entire supply corridor for months until we got an apology from the highest levels of the USG (I.e., SoS Clinton) and no such attack ever occurred again.

Man.. Afg didn't occupy us either. I meant TTP, BLA, BRA, etc. were attacking Pakistan from safe houses in Afghanistan (5-6 Indian embassies and consulates general). We didn't stop trade or expel Afghans back then. [BTW, I remember the threads you made on BLA's posted pictures to determine their location, etc. Good days.]

Fortunately, we responded well post Salala, but I was talking about their support or connivance to TTP, BLA, etc. Also, ANA attacked the border at least once.
I also argued the manner in which we did all that. The defence minister cussing and dehumanising Afghans. ISPR said that we value one Pakistani over all Afghanistan (not a diplomatic statement). We didn't say anything like that post-Salala. Anyway, it is not easy to revive trade even after normalisation bcz of so much bad faith now.

Therefore, when we declare enmity/hostitility we should also look for other markets/routes for our exports.

India is yet another example for us, i.e., not trading with them while they kill Kashmiris and Pakistanis. What gets rebranded in the UAE as the source of export is a game that is played but it comes nowhere close to the actual bilateral trade potential that can be had. You could lump the smuggling across the Pak-Afg border in the same category that it cannot be 100% locked down. However, open trade and even transit trade through Afghanistan is a no go till these Afghan takfiri Taliban mend their ways.

Yes, via Bhattinda and smuggling are similar. Also, these are miniscule comapred to open trade.

 

[Jango]

Bunch of tosh. It is just crony capitalism by Waderas, Patwaris and Faujeets. How can PIA be considered privatised if Fauji Foundation, which represents the establishment, is going to have a controlling interest ?

I've been trying to wrap my head around this for a few days as well.

Not an accountant or savvy in these matters, so happy to be enlightened.

But if a quasi-state owned entity is buying the organization from the state and running it, how is this privatization in the true sense? You just brought in your own private group through a semi-managed deal, and like a true mafia boss want your own cut as well.

Not to say privatization of PIA is the wrong move, but certainly alot of questions still pending.

How I see it, the government basically wanted to cut the recurring losses, and let someone else run the airline and get a profit.

 

[Blain2]

economy still in gutter and ordinary awaam struggling with hyperinflation and unemployment.
Yet these 'imported' clown finance minister says BS all day long.....realities on ground is different.
MASSIVE FAILURE OF ALL POLICIES
All the Mafias (waderas, feudal lords, holy cows, politicians, bureaucracy, judiciary) have destroyed it....and now nobody in the world wants to come invest or do business here, they're all leaving or left already!

So what's new in the past 70 years? Every single government has failed Pakistan and Pakistanis. Why cry about the incumbents only?

 

[Meengla]

But if a quasi-state owned entity is buying the organization from the state and running it, how is this privatization in the true sense?

Bringing the Fauji foundation was a 'demand' by the private companies and the Fauji Foundation will be a minor player. Here:

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[newb3e]

Bringing the Fauji foundation was a 'demand' by the private companies and the Fauji Foundation will be a minor player. Here:

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only placing good retired officers in management position and destroying whatever AH group tries to rebuild!!

 

[newb3e]

@newb3e sb

praising the FM "meri jind meri jaan"

Why do you keep referring to FM sahib as "Meri jind meri jaan"? Is this a derogatory reference in Punjabi?

Regards

are you accusing me of blasphemy brother! how dare I a cockroach a civilian disrespect our great CDS FM hafiz syed protector of house yahood chowkider of shareef and zardari! meri majaal! i chant the song in praise of great general! you should do the same it cleanses the soul keeps one away from sin and nearer to haram! thats the only drawback rest its fine!

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[Blain2]

Bunch of tosh. It is just crony capitalism by Waderas, Patwaris and Faujeets. How can PIA be considered privatised if Fauji Foundation, which represents the establishment, is going to have a controlling interest ?

First, what is the definition of "controlling interest"? Mind explaining to us financial nobodies?

Controlling interest, if I remember my basic economics, is when an entity has majority shares I.e., more than 50% of the stake. Going by the all knowing Mr. AI: "owning enough voting shares (usually over 50%) to dictate major decisions, like electing the board, setting strategy, and controlling management, even if you don't own the entire company."

As far as I can tell, Fauji Foundation is a partner but not a "controlling" partner as it would not have a majority of the 70% share that the government had opened up for bidding.

Second, how has Pakistan's economy run in the past? Including in the "Golden era" of PTI rule. Was it not comprised of the "same page Faujeets", AND Waderas/Nawabs/Maliks AND Patwaris of the past government?

What snake-oil are we peddling to this godforsaken nation now as if things were drastically different in the past or recent past. It is the EXACT SAME setup except instead of IK, it is now Sharifs at the top.

The entire goddamned setup/mindset/people are the same. The only chagrin that many around here have is that Imran Khan is not calling the shots but someone else is. What *#@%$!g difference has/would it made/make?

 

[Meengla]

only placing good retired officers in management position and destroying whatever AH group tries to rebuild!!

Let's have this discussion in December 2026, shall we? Notice, Arib Habib-not some illiterate guy used 'demand' from the Establishment to include the Fauji Foundation. If the private sector is going to put in so much money then they had their own demands. The businessmen of Karachi are not fools--they had played a keyrole after 1947 in Pakistan's stability and economy. It is only the rot which started in the 80s which has sent Pakistan back due to politics. In case of PIA, it was the PPP the major culprit.
PS. It doesn't matter who turns PIA around, what matters is that there is a turn around which benefits Pakistan.

 

[Blain2]

only placing good retired officers in management position and destroying whatever AH group tries to rebuild!!

Good retired military officers are just as good as any private corporate leader when it comes to leadership/management. This type of placement/hiring happens in the western market economies all the time. Countless US/British retired officers run the corporate culture in many corporations. On the government side (public sector), significant portions of senior leadership in many publicly traded companies are comprised of former/retired military officers.

 

[maxpane]

Let's have this discussion in December 2026, shall we? Notice, Arib Habib-not some illiterate guy used 'demand' from the Establishment to include the Fauji Foundation. If the private sector is going to put in so much money then they had their own demands. The businessmen of Karachi are not fools--they had played a keyrole after 1947 in Pakistan's stability and economy. It is only the rot which started in the 80s which has sent Pakistan back due to politics. In case of PIA, it was the PPP the major culprit.
PS. It doesn't matter who turns PIA around, what matters is that there is a turn around which benefits Pakistan.

i think this time businessmen want assurance that against court or political blaclmailing

 

[puttputt]

At least PIA seems to be off the government's back. What a clown-show that has been. The government needs to wean off all these loss making entities. Only then will the government have the breathing room to allow for subsidies etc. for investments to drive an export-led/first approach.

Our pharmaceutical/drug industry is doing well right now, and we could be on the cusp of a massive production and export boom as GLP-1 patents expire through 2026. Our pharma companies will be among the leaders of the generic GLP-1 push, and a few of them are already lining up commercial loans to drive their expansion.

FYI @Pakistan Space Agency for your stocks.

 

[Blain2]

I've been trying to wrap my head around this for a few days as well.

Not an accountant or savvy in these matters, so happy to be enlightened.

But if a quasi-state owned entity is buying the organization from the state and running it, how is this privatization in the true sense? You just brought in your own private group through a semi-managed deal, and like a true mafia boss want your own cut as well.

Not to say privatization of PIA is the wrong move, but certainly alot of questions still pending.

How I see it, the government basically wanted to cut the recurring losses, and let someone else run the airline and get a profit.

Anyone crying about it wanted the gravy train to continue at the expense of the tax-payers/government.

There were multiple bidding opportunities and any/all bidders were welcome. So transparency wise, it was pretty open.

Also, keep in mind, whoever is not ruling will question any or all things the sitting government is doing. Goes with the territory.