IMF staff deal reached, investment-led growth now priority: FinMin

Aurangzeb, Malik stress focus on emerging sectors, tech, innovation for inclusive growth

Pakistan has achieved a staff-level agreement with the International Monetary Fund (IMF) for its second loan review, with the board expected to approve the next tranche in early December, Finance Minister Muhammad Aurangzeb said on Wednesday. Speaking at the ninth Future Summit in Karachi, he underlined the government’s shift toward an investment-driven economic model, led primarily by the private sector.

Aurangzeb said investor confidence was strengthening, adding, “Our direction is right.” He confirmed that Google had decided to open an office in Pakistan and was considering the country as an export hub. A blockchain centre has also been established at the Lahore University of Management Sciences (LUMS) as part of a broader focus on emerging technologies.

The minister said fiscal reforms had progressed steadily over 18 months, with efforts underway to expand the tax base using artificial intelligence. “The sugar sector is now digitised, and the cigarette sector will follow,” he said, adding that 900,000 new tax filers had been registered.

Read: Google begins local Chromebook assembly in Pakistan

He also noted interest from Egypt in adopting Pakistan’s reform model, while the privatisation of Pakistan International Airlines (PIA) was on track for completion by the end of the year. Recent UAE investment in a Pakistani bank signalled “the beginning of a new era,” Aurangzeb said.

Separately, Federal Minister for Climate Change and Environmental Coordination Senator Musadik Malik emphasised the need for equal opportunities and fair competition in Pakistan’s economic landscape. Addressing the same summit, he said sustainable development depended on breaking elite dominance and fostering a competitive, innovation-driven economy.

“The aspirations of our youth are simple,” Malik said. “They want good jobs, safe neighbourhoods and basic services.” He argued that macroeconomic figures such as GDP growth held little relevance for the average Pakistani, who was more concerned about education, healthcare, pollution and urban flooding.

Malik warned that environmental challenges, including smog in Lahore and flooding in Karachi, were shortening life expectancy by up to eight years. “Butterflies and fireflies are gone; everything is ruined,” he said, calling for urgent reforms in healthcare, education and local governance. He highlighted high unemployment among young doctors and the lack of primary healthcare facilities, saying global models showed such problems could be addressed.

Read more: Pakistan likely to get $1.2b IMF tranche

The minister stated that innovation requires competition and that protectionist policies and preferential access to energy for certain sectors hinder exports and foreign investment. “If the elite dominates society, how will businesses grow?” he asked, urging an end to privilege-based policymaking.

Aurangzeb and Malik both underscored that Pakistan’s future economic resilience depended on competitiveness, youth empowerment and the effective use of external funding, including for climate resilience. Both stressed the importance of focusing on emerging sectors, technology and innovation to build a sustainable, inclusive economic model.

In the same event, Khyber-Pakhtunkhwa Governor Faisal Karim Kundi invited investors to capitalise on the province’s strategic focus on digital transformation and renewable energy. Addressing the summit, he said youth participation and tourism promotion were priorities, with the province providing a conducive investment environment. “Public and private sectors must become development partners,” he said, listing marble, honey, and carpet manufacturing as areas of potential.

Sindh Chief Minister Murad Ali Shah called for inclusive, tech-driven growth and anticipatory governance to tackle economic and climate challenges. Speaking at the Future Summit in Karachi, he said the province was investing in energy transition, urban development and human capital, but federal delays tied to IMF conditions were holding up approval for IT parks and technology zones.

Shah said Sindh contributed over 30 per cent to Pakistan’s GDP, with Karachi accounting for nearly half of the country’s exports. He highlighted reforms to improve transparency, digital governance and ease of doing business, describing Sindh’s public-private partnership model as the strongest in the country.

He noted that Rs959 billion had been allocated for development projects in the current budget, while the proposed budget for next year stood at Rs3.45 trillion, including a record Rs523.7 billion for education.

With 60 per cent of its population under 30, Shah said Sindh was focused on digital and vocational training to help youth create jobs locally. Calling for collaboration between the government, private sector and civil society, he said: “We cannot stop global change, but we can correct our course and build a sustainable, inclusive future”.