Finance Minister Aurangzeb emphasized that Pakistan, like other emerging markets, must build strong fiscal and external buffers to withstand global uncertainties. He highlighted geopolitical tensions, trade realignments, and supply chain adjustments as key challenges for the economy.
Speaking at an event on Wednesday, Aurangzeb noted that Pakistan is following a structural reform agenda to ensure long-term macroeconomic stability. He stressed that these buffers are necessary to manage exogenous shocks, including border tensions and internal law and order issues.
Aurangzeb said the federal government and Ministry of Finance are actively working to maintain these buffers. He added that although Pakistan has achieved macroeconomic stability, the government wants to avoid sudden economic disruptions that could affect growth and investor confidence.
Citing recent data, the finance minister said large-scale manufacturing in Pakistan grew by approximately 4% year-on-year in the first four months of the fiscal year. He noted that while this growth is promising, more time is needed to confirm a sustainable trend.
Aurangzeb also pointed out Pakistan’s increasing attractiveness to foreign investors. He highlighted Google’s announcement to open offices and develop Pakistan as a technical and export hub. He said multinational corporations evaluate countries based on returns on investment, demonstrating growing global confidence in Pakistan.
On policy reforms, Aurangzeb shared that the government abolished the Export Development Surcharge (EDS), providing immediate relief to exporters. This decision aims to boost Pakistan’s global competitiveness and support the export sector.
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The finance minister concluded that strong fiscal discipline, structural reforms, and well-built economic buffers are essential for Pakistan to withstand global shocks while sustaining growth, attracting investment, and ensuring economic stability for its citizens.
