Finance Minister Aurangzeb says economy set to grow around 4% this fiscal year

EU–Pakistan Business Forum launches in Islamabad

Finance Minister Muhammad Aurangzeb on Tuesday said Pakistan's economic growth will be about 4% this fiscal year, according to Radio Pakistan.

Speaking at the launch of the EU-Pakistan High Level Business Forum in Islamabad, he noted that this represented a significant improvement over the previous fiscal year, adding that the country was consolidating gains in terms of macroeconomic indicators.

Aurangzeb mentioned that the current account surplus was a little over one billion dollars in March this year, expressing satisfaction over IT exports, the positive trajectory of value-added segments, as well as an increase in remittances.

He added that the country’s foreign exchange reserves were expected to reach around $18 billion by the end of June, providing an import cover of three months.

Finance Minister Muhammad Aurangzeb, in his address at the European Union Business Forum, says Pakistan’s economy is moving toward stability, emphasising that sustainable economic growth remains the government’s top priority.@Financegovpk #PakistanTV #PakistanEconomy… pic.twitter.com/NV2WbmHm6Q

— Pakistan TV (@PakTVGlobal) April 28, 2026

Also addressing the forum, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan underscored that the European Union remained Pakistan’s largest export destination, with the GSP Plus framework playing a pivotal role in expanding market access and improving standards.

Under the GSP+ scheme, eligible countries are required to implement 27 international conventions covering human rights, labour rights, environmental protection, and good governance. In exchange, the EU reduces import duties to zero on more than two-thirds of the tariff lines applied to its exports. Pakistan is currently one of eight countries that benefit from this scheme.

However, Khan stressed that the future of this partnership lay beyond trade, focusing on investment, technological collaboration, and integration into global value chains.

Also Read: FinMin says Pakistan regaining macroeconomic stability, investor confidence

He pointed to vast opportunities across sectors, including mining, tourism, renewable energy, agriculture modernisation, pharmaceuticals, logistics, and infrastructure. He particularly emphasised the untapped potential of regions such as Gilgit-Baltistan, Khyber-Pakhtunkhwa and Balochistan, rich in natural resources and investment prospects.

Inviting European partners to explore Pakistan’s tourism sector, he noted the country’s unique blend of natural beauty and cultural heritage, offering high-value investment opportunities.

The forum, scheduled for April 28-29, serves as a major platform to deepen trade and investment cooperation and to bring together a large number of participants, including government representatives, business leaders, and institutional stakeholders from Pakistan and across the EU.

A press release from the EU said the forum brought together around 1000 senior policymakers, European and Pakistani business leaders, investors and financial institutions.

"With the EU being the largest single market in the world, a leading of outward foreign direct investment globally and Pakistan’s number one export destination, the forum represents a significant opportunity to further the EU-Pakistan economic partnership. It aims to turn strong trade ties into increased investment flows, technology partnerships, greater innovation and sustainable industrial growth," the press release said.

It quoted EU Ambassador to Pakistan Raimundas Karobolis as saying at the forum's opening: “The European Union enjoys strong economic relations with Pakistan. It is a source of pride for me to say, that the European Union is the top export destination for Pakistan. The purpose of the forum is not just to celebrate our trade relations, but to deepen, diversify, 'green', and transform them into long-lasting investments. Through this, our mutual prosperity will thrive.”

The press release said the opening session marked the launch of the EU-Pakistan Business Network, which brought together more than 300 EU companies active in Pakistan. It added that the network aimed to serve as a collective voice of EU businesses in the country, facilitating dialogue with policymakers and supporting new European companies exploring opportunities in Pakistan.

"The opportunities emanating from the EU’s Global Gateway initiative — the EU’s largest investment programme outside of the EU which aims to mobilise and de-risk 400 billion EUR of investments in the period 2021-2027 — were presented in a dedicated plenary session with Mr Peteris Ustubs, director for Asia and the Pacific at the Directorate-General for International Partnerships, European Commission; Ms Thouraya Triki, director at the European Investment Bank; and Mr Hans Bogaard, Director of Agribusiness, Food and Forestry at FMO (the Entrepreneurial Development Bank from the Netherlands). 

"Discussions throughout the day focused on opportunities and challenges in priority sectors such as agribusiness, digital innovation and fintech, green logistics, sustainable textiles, and responsible mining.

"Throughout the two-day forum more than 600 B2B meetings are scheduled, reflecting strong interest from both European and Pakistani companies in forming joint ventures and partnerships. New financial programmes and partnerships are also expected to be signed during the forum," the press release said.

It added that the event provided a structured platform for high-level dialogue and deal-making between a combined economy of over 700 million people.