Finance Minister Muhammad Aurangzeb said Pakistan needs stronger fiscal and external buffers to face global uncertainties. He highlighted geopolitical tensions, trade fragmentation, and supply chain adjustments as key risks. Aurangzeb stressed the government is working to ensure macroeconomic stability remains intact.
Addressing an event on Wednesday, Aurangzeb said Pakistan, like other emerging markets, is on a path of structural reforms. He emphasized that buffers are needed to absorb exogenous shocks, citing border tensions and internal law and order challenges. The minister urged the federal government and finance ministry to maintain these safeguards.
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Aurangzeb noted that Pakistan has achieved macroeconomic stability, while cautioning that recent growth in large-scale manufacturing of 4% year-on-year is not yet a consistent trend. He called the underlying economic building blocks positive and highlighted that Pakistan is emerging as a viable destination for foreign investment.
The finance minister cited multinational companies’ growing interest in Pakistan, noting a shift of investment focus from the West to the East. He mentioned Google’s recent commitment to make Pakistan a technical and export hub, reflecting increasing investor confidence in the country’s economic potential.
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Aurangzeb also announced policy measures supporting exports, including the abolition of the 0.25% Export Development Surcharge (EDS). He said this step improves Pakistan’s competitiveness and provides relief to exporters, aligning with the government’s broader structural reform agenda.