FinMin seeks investment at WEF
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has invited global stakeholders to invest in Pakistan's priority sectors, including agriculture, IT, renewable energy, and pharmaceuticals.
In an exclusive article published during the World Economic Forum (WEF) annual meeting, Aurangzeb outlined Pakistan's transformative economic journey. He highlighted efforts toward stabilisation and growth, which have begun to yield positive results.
Aurangzeb recalled the severe fiscal and monetary challenges upon assuming office in 2024, when inflation had surged to 38%, foreign exchange reserves barely covered two weeks of imports, and GDP growth had plummeted to 0.2%. Devastating floods and the compounded effects of COVID-19 inflicted over $30 billion in damages, further testing the country's resilience.
Recognising the urgency, the government implemented decisive reforms, including exchange rate stabilisation, tighter fiscal policies, and targeted monetary interventions. With support from the International Monetary Fund (IMF)'s $7 billion facility, structural improvements were initiated in critical sectors like energy and taxation.
He highlighted the launch of "Uraan Pakistan," an economic transformation plan aimed at achieving export-led GDP growth of 6% by 2028. The initiative highlights public-private partnerships, enhanced export competitiveness, and optimised public finances. Priority sectors include agriculture, energy, textiles, IT, and pharmaceuticals.
A pivotal partnership with the World Bank involves a $20 billion initiative targeting health, education, poverty alleviation, and climate resilience. By integrating sustainability into the development framework, Pakistan contributes to global efforts to achieve the United Nations Sustainable Development Goals (SDGs), he said.
In 2024, the government introduced a reform-oriented budget, setting an ambitious revenue target of Rs13 trillion. Reforms focused on broadening the tax base, modernising the Federal Board of Revenue (FBR), and leveraging technology for transparency and compliance.
He noted significant progress in the economy, with inflation reduced to 4.1% and foreign exchange reserves now covering over two months of imports. Goods exports rose by 7.1%, while the IT sector grew 28% year-on-year. Foreign direct investment increased by 20% in the first half of fiscal year 2025, and remittances hit a record $35 billion.
Aurangzeb stressed the need to address structural inefficiencies in revenue collection, energy, and state-owned enterprises. He called on global investors to capitalise on Pakistan's SEZs and opportunities in climate resilience and sustainable development.