Federal Finance Minister Senator Muhammad Aurangzeb announced that Pakistan is moving away from aid dependency and prioritizing trade and investment to ensure long-term economic sustainability and mutually beneficial partnerships, especially with GCC countries.
In an interview with CNN Business Arabia, Aurangzeb highlighted that Pakistan’s economic confidence has strengthened due to comprehensive reforms. Inflation has dropped from a record 38 percent to single digits, while fiscal surpluses and a stabilized exchange rate reflect improving macroeconomic stability.
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The Finance Minister pointed out that Pakistan achieved notable international recognition this year, with all three credit rating agencies upgrading the country’s ratings and outlook. Additionally, the IMF approved Pakistan’s second review under the Extended Fund Facility, demonstrating growing global confidence.
Aurangzeb emphasized structural reforms in taxation, energy, state-owned enterprises, public financial management, and privatization, aimed at sustainable growth. Tax-to-GDP ratio increased to 10.3 percent last fiscal year, with plans to reach 11 percent by expanding the tax base and improving compliance.
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The Minister also noted reforms in the energy sector, including private sector involvement, circular debt reduction, and tariff rationalization, which are expected to boost industrial competitiveness and support economic revival across the country.
Looking ahead, Pakistan is actively engaging GCC partners to attract investments in energy, oil and gas, minerals, AI, digital infrastructure, pharmaceuticals, and agriculture. Talks on a Free Trade Agreement with GCC are at an advanced stage, further solidifying economic ties.