Pakistan shifts economic focus toward investment and export-led growth

Pakistan’s Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has announced a strategic shift in the nation’s economic policy, moving from macroeconomic stabilization toward investment, capital formation, and export-led growth.

Speaking at a J. P. Morgan conference in London, Aurangzeb highlighted progress in fiscal consolidation and debt management. He noted that GDP growth recovered to 3.7 percent in FY26, while the fiscal deficit fell to a multi-year low of 2.6 percent of GDP. The minister outlined six key priorities, including promoting sustainable productivity, transitioning from aid to trade, and expanding the digital economy through blockchain and Web 3.0.

In a separate press conference, Aurangzeb warned that civil disruptions, such as strikes and sit-ins, could result in an estimated daily economic loss of Rs 120 billion. He described such actions as ‘self-inflicted pain’ that threatens the transition to sustainable growth. He also reported that foreign exchange reserves have reached $21.4 billion, a historic high for the country, and projected that IT service exports could reach $5.5 billion this year.