Pakistan, UK discuss economic cooperation, reform priorities

ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday held talks with Hamish Falconer, UK Parliamentary Under-Secretary of State for the Middle East, Afghanistan and Pakistan (MENAP), on strengthening bilateral economic cooperation and Pakistan’s ongoing reform agenda.

Falconer, who called on the finance minister at the Finance Division, was accompanied by British High Commissioner to Pakistan Jane Marriott and other officials from the British High Commission.

The two sides exchanged views on regional developments, Pakistan’s macroeconomic outlook, ongoing structural reforms, fiscal priorities, institutional modernization, and opportunities to enhance economic cooperation between Pakistan and the United Kingdom.

During the meeting, Aurangzeb briefed the visiting delegation on the government’s economic reform agenda and key priorities outlined in the Federal Budget 2026-27.

He reiterated the government’s commitment to maintaining macroeconomic stability, sustaining economic recovery, accelerating structural reforms, and promoting inclusive and sustainable growth.

The finance minister also discussed recent regional developments, including the easing of tensions following the understanding reached between the United States and Iran.

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He reaffirmed Pakistan’s support for dialogue, de-escalation and the peaceful resolution of conflicts.

Aurangzeb said the government’s economic planning and fiscal framework had taken into account potential geopolitical risks and external shocks, while emphasizing that greater regional stability would create a more favorable environment for investment, trade and economic activity.

The minister also highlighted ongoing fiscal and institutional reforms aimed at improving revenue mobilization, enhancing compliance, reducing leakages, and modernizing tax administration through technology, data integration, centralized processing and digital invoicing.

He said the reform agenda was designed not only to improve revenue collection but also to strengthen transparency, reduce discretionary intervention and build trust between citizens, businesses and public institutions.

The discussion further covered privatization, rightsizing of public-sector entities, improving public expenditure efficiency, expanding digital governance and strengthening targeted social protection programmes.

Falconer appreciated the government’s commitment to economic reforms and acknowledged the scope of Pakistan’s transformation agenda.

The British minister also reaffirmed the United Kingdom’s commitment to continued engagement and cooperation with Pakistan in areas of mutual economic interest.