Pakistan’s Finance Minister, Senator Mohammad Aurangzeb, presented the country’s economic recovery at the Pakistan Conference 2025 at Harvard University. He highlighted the progress made despite inheriting significant challenges such as a contracting GDP and dwindling reserves. According to Aurangzeb, Pakistan has stabilized its economy, restored investor confidence, and reignited growth.
Aurangzeb emphasized key achievements, including reducing inflation to 0.7%, the lowest in 60 years, and doubling foreign exchange reserves. He also noted a 44% increase in foreign direct investment (FDI) and a 24% rise in IT exports. Pakistan has even achieved a fiscal surplus for the first time in 24 years, with a higher primary fiscal surplus in two decades. Fitch also upgraded Pakistan’s credit rating to B- with a stable outlook.
Looking ahead, the finance minister outlined Pakistan’s growth strategy. This includes maintaining fiscal discipline, reducing inflation, and implementing deep structural reforms in energy, taxation, governance, and state-owned enterprises. He also pointed to opportunities in Pakistan’s mineral resources, expanding IT sector, and green energy initiatives.
Aurangzeb also discussed the government’s plans for debt management, noting that Pakistan has successfully reduced its public debt-to-GDP ratio from 75% to 67.2%. He mentioned that rightsizing government expenditures and privatizing loss-making state-owned enterprises could save up to 2% of GDP annually. With a focus on sustainable growth, Pakistan is committed to strengthening its financial sector and addressing climate change.