Finance Minister Aurangzeb has projected Pakistan’s economic growth at 3.5% for the current fiscal year, despite challenges posed by recent floods. He said the country is on a path of gradual recovery, supported by reforms and renewed international confidence.
In an interview with CGTN America, Aurangzeb confirmed that Pakistan expects to receive $1.2 billion from the International Monetary Fund (IMF) after a staff-level agreement was finalized. The funds will be disbursed once approved by the IMF board, he added.
According to Aurangzeb, the IMF’s support in September 2024 helped stabilize Pakistan’s $370 billion economy, strengthen the rupee, and ease inflationary pressures. He noted that inflation has now dropped to single digits and that monetary policy is becoming more relaxed to encourage business growth.
The finance minister said Pakistan’s GDP grew by 3% last year, with an initial goal of over 4% for this fiscal year. However, recent flooding may slightly reduce growth. “We still aim for about 3.5%, supported by recovery in agriculture and key industries,” Aurangzeb said.
He warned that climate change poses an “existential challenge” for Pakistan, with recurring floods damaging crops like rice and cotton.
Discussing economic initiatives, Aurangzeb highlighted progress in the second phase of the China-Pakistan Economic Corridor (CPEC). He said 24 new joint ventures were signed in Beijing, focusing on private sector investments in IT, AI, agriculture, minerals, and pharmaceuticals.
The minister also pointed to progress in structural reforms, including taxation, energy, and public finance. He confirmed that the first bank privatization has been completed and that Pakistan International Airlines (PIA) will be privatized before year-end.
Aurangzeb emphasized the government’s commitment to digital transformation, with new systems aimed at documenting cash transactions and improving tax collection. He said technologies such as AI and data analytics will help raise the tax-to-GDP ratio from 8.8% to 10.2%.
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He also mentioned that Pakistan has regained access to international capital markets, including borrowing from Middle Eastern banks and plans to issue its first Panda bond. Aurangzeb added that trade agreements with the United States will support textile exports and encourage economic diversification.
