Changing DNA of Economy for Inclusive, Sustainable Growth a Must: Aurangzeb
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has reaffirmed the government’s commitment to implementing its reform agenda and meeting structural benchmarks to ensure macroeconomic stability, promote inclusive, sustainable growth, and reduce Pakistan’s reliance on external borrowing.
Aurangzeb emphasized that achieving this goal requires fundamentally transforming the economy. This transformation involves moving away from the usual boom-and-bust cycles and steering towards sustained export-led growth, which encourages investment and foreign direct investment (FDI) flows into export-oriented sectors and regains access to the international capital market.
He made these remarks during a meeting with a high-level delegation from the Asian Development Bank (ADB) at the Finance Division on Wednesday. The visiting delegation was led by Donald Bobiash and Shigeo Shimizu, both Executive Directors of the ADB, alongside Yong Ye, Country Director of the ADB, and other senior officers from both the ADB and the Finance Division.
The minister welcomed the delegation and provided an overview of the ongoing structural reforms and the resultant improvements in key economic indicators. He highlighted the efficient management of twin deficits, backed by buoyant remittances and healthy exports. He also noted a significant reduction in inflation from 38 percent last year to a 44-month low of 6.9 percent in September, alongside a policy rate cut of 450 basis points, with expectations of further reductions in the coming months.
Aurangzeb pointed out the stability in the exchange rate and the growth in foreign exchange reserves to $10.7 billion following the signing of the IMF accord. He also mentioned the Pakistan Stock Exchange index surpassing the 85,000 mark, indicating growing business confidence and a favorable investment climate that is attracting further institutional flows into the country.
He credited Prime Minister Shehbaz Sharif for overseeing and spearheading the implementation of wide-ranging structural reforms in key sectors, including taxation, energy, state-owned enterprises (SOEs), privatization, government rightsizing, and pension reforms.
The minister also highlighted the recent signing of a National Fiscal Pact between the federation and the provinces as a milestone. This pact aims to harmonize the pace of structural reforms, incentivize provinces to mobilize greater tax resources, rationalize their development expenditures, and improve governance to meet development goals.
Aurangzeb expressed gratitude to the ADB for its continued support of Pakistan’s development agenda and its assistance in key sectors. He stated that Pakistan looks forward to deepening its partnership with the ADB through enhanced assistance and support for its reform program.
Donald Bobiash, Shigeo Shimizu, and other ADB officials praised Pakistan’s bold reforms for stabilizing its economy and achieving sustainable growth. They reaffirmed ADB’s support for ongoing reforms, strengthening the country’s fiscal framework, and supporting Pakistan’s development goals, including efforts for inclusive growth, innovation, and climate action.
