Pakistan Transitioning from Stability to Capital Formation: Finance Minister

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Islamabad (The COW News Digital ) Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb stated that Pakistan is making a decisive shift from economic stabilization toward investment and broad-based capital formation.

Addressing an executive session at the JP Morgan Emerging and Frontier Markets Opportunities Conference in London, the finance minister outlined Pakistan’s macroeconomic progress and structural reform roadmap before representative managers of 55 global investment funds. Highlighting key indicators, Senator Aurangzeb noted that GDP growth recovered to 3.7 percent in FY2026, while the fiscal deficit declined to 2.6 percent of GDP—reaching a multi-year low alongside a primary surplus for the third consecutive year.

The finance minister outlined six core government priorities, emphasizing sustainable growth, structural reforms, a transition from aid to trade, broader financial inclusion, and preparing the economy for emerging technologies including Web 3.0 and blockchain. State Bank of Pakistan (SBP) Governor Jameel Ahmad also addressed the investors, highlighting the consolidation of foreign exchange reserves, rising remittance flows, and the growing contribution of Roshan Digital Accounts.

Reiterating the government’s commitment to reducing state involvement in commercial sectors, Senator Aurangzeb highlighted ongoing privatization initiatives—including PIA, DISCOs, and airport operations—alongside plans to institute a National Private Equity Framework to attract global institutional capital.

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