Pakistan economy shifting towards export-led growth: Aurangzeb

Finance Minister Muhammad Aurangzeb has said Pakistan’s macroeconomic stability, sustained reforms and policy continuity are shifting the economy to export-led growth and opening new horizons for domestic and global investors for sustainable growth.

He expressed these views in a wide-ranging interview conducted a few weeks ago and published now in the internationally renowned USA Today newspaper.

The Finance Minister noted that, for the first time in several years, Pakistan has achieved both a primary fiscal surplus and a current account surplus, signaling a decisive shift away from the cycle of recurring deficits.

He said strong remittance inflows have played a critical role in supporting this turnaround, while inflation has fallen sharply from a peak of 38 percent to single-digit levels. Foreign exchange reserves have risen to over 14.5 billion dollars and the exchange rate has remained stable, helping to restore investor confidence.

Drawing lessons from the past, he underlined that Pakistan is consciously moving away from a consumption- and debt-driven growth model towards an export-led strategy.

The current budget, he explained, reflects this shift through structural reforms in taxation, energy pricing and state-owned enterprises, alongside far-reaching tariff reforms aimed at dismantling decades of protectionism and enhancing global competitiveness.

The federal minister highlighted that Pakistan is aligning its economic strategy with changing global demand patterns, identifying information technology services, textiles and agricultural exports as key areas with strong potential.

He noted that IT exports have already crossed four billion US dollars and could double within five years with sustained regulatory clarity and infrastructure development.

Efforts are also underway to simplify tax regimes for exporters and reduce bureaucratic hurdles in order to foster long-term productivity and competitiveness.

Muhammad Aurangzeb said that regulatory frameworks are being updated to support innovation and encourage foreign investment, particularly from the United States, describing technological change as a major game changer for Pakistan.

He invited global investors and partners to engage with Pakistan through trade, investment and collaboration.