Economy on road to stability, growth

Aurangzeb tells Saudi counterpart Pakistan's reserves improving, investor confidence growing

ISLAMABAD:

Federal Minister for Finance Senator Muhammad Aurangzeb has said that Pakistan's economy is on a path of stability and growth. Foreign exchange reserves have improved and there is import cover of around three months, reflecting economic stability.

The confidence of both domestic and foreign investors is increasing. At present, 16 initial public offerings (IPOs) are under consideration, while nine IPOs were successfully completed last year. More than 120,000 new investors have entered the capital market, which is a clear sign of confidence in the economy.

According to the Ministry of Finance, he expressed these views during a meeting with Saudi Arabia's Minister of Finance Mohammed Al-Jadaan on the sidelines of the World Economic Forum Annual Meeting 2026 in Davos.

During the bilateral meeting, the two leaders exchanged views on Pakistan's economic progress and discussed ways to further strengthen the longstanding economic partnership between Pakistan and Saudi Arabia. Saudi Finance Minister Mohammed Al-Jadaan expressed satisfaction over the recent improvement in Pakistan's economy.

Senator Aurangzeb thanked the kingdom for their continued support for Pakistan, highlighting the strong and enduring relations between the two countries. Briefing his Saudi counterpart on key economic indicators, he reiterated that Pakistan's economy is moving towards stability and growth. He said a downward trend in interest rates has begun, while monetary policy decisions are taken independently by the State Bank of Pakistan.

The finance minister said economic growth stood at 3.1% last year, which increased to 3.7% in the first quarter of the current fiscal year. He clarified that the government's focus is on a stable current account and sustainable economic growth.

Senator Aurangzeb also highlighted the important role of remittances, stating that these are expected to increase from $38 billion last year to over $41 billion this year. Growth in IT services was also described as positive for economic activity. On the occasion, he appreciated the support provided by Saudi Arabia.

Highlighting the government's efforts to promote foreign investment, the finance minister said that minerals, agriculture and other productive sectors are key priorities for investment, which can help increase exports and create employment opportunities for the local population.

He also briefed his counterpart on the government's privatisation strategy, noting that significant progress has been made in recent months, including the investment made by the United Arab Emirates in the digital sector and matters related to Pakistan International Airlines.

He said work will continue in the next phase on the privatisation of other state-owned enterprises, power distribution companies and the airports of Islamabad, Lahore and Karachi. The finance minister said the Privatisation Commission is working under the leadership of experienced professionals and the process is being made transparent, structured and sustainable.

In his remarks, Saudi Finance Minister Mohammed Al-Jadaan referred to Saudi Arabia's experience with privatisation, stating that through integrated and consistent reforms, the kingdom has achieved long-term benefits. He cited Saudi airports as an example, which have become profitable institutions after reforms.

At the conclusion, both finance ministers reaffirmed their commitment to further expanding economic relations between Pakistan and Saudi Arabia and promoting cooperation based on mutual benefit.