Minister of State for Finance Bilal Azhar Kayani on Monday said the government was pivoting decisively towards private sector-led, export-driven growth to sustain the economic stability achieved since assuming office after the 2024 general elections.
Addressing a news conference, the minister said the current policy direction was firmly anchored in macroeconomic stabilisation secured under the IMF programme, which also provided the framework for last year’s federal budget.
“Stabilisation was the first imperative. Now, the Prime Minister is focused on translating that stability into durable, private sector-led economic growth,” he said, outlining the government’s post-stabilisation reform priorities.
Bilal Azhar said the economic indicators reflected tangible improvement. Inflation during fiscal year 2025 had declined to low single digits, foreign exchange reserves had increased significantly, FBR collections had recorded a 26 percent growth, and the tax-to-GDP ratio had risen by 1.5 percentage points, from 8.8 percent to 10.3 percent. He said Pakistan’s previous growth cycles had largely been consumption-led, resulting in imports outpacing exports and placing pressure on the external account.
“For sustained and resilient economic growth, export-led growth is essential. This is our clear target,” he said, stressing that enhancing competitiveness, diversifying exports and improving productivity were central pillars of the government’s medium-term economic strategy.
Following macroeconomic stabilisation, the minister said the government had intensified engagement with the private sector to remove policy bottlenecks and align incentives with export expansion. “That is why the Prime Minister is focusing on private sector-led economic growth, because without exports, growth cannot be sustained,” he added.
Bilal Azhar said the IMF Executive Board approved the programme review on December 8, which, he said, reflected international confidence in Pakistan’s reform trajectory and policy continuity. He said several government-led working groups had already submitted recommendations aimed at translating reform commitments into actionable measures. “These include the Export Development Fund, the Industrialisation Fund, the Income Tax Group, and the Customs Trade and Tariff Group,” he said, adding that the government was moving rapidly from consultation to implementation. Highlighting a concrete reform outcome, the minister said a 0.25 percent levy on export turnover, identified by the working groups as a burden on exporters, had been promptly abolished.